THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 
____________ 

ARRANGEMENT OF SECTIONS 
____________ 

CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 
REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS 

3.  Prior registration of real estate project with Real Estate Regulatory Authority. 
4.  Application for registration of real estate projects. 
5.  Grant of registration. 
6.  Extension of registration. 
7.  Revocation of registration. 
8.  Obligation of Authority consequent upon lapse of or on revocation of registration. 
9.  Registration of real estate agents. 
10.  Functions of real estate agents. 

CHAPTER III 
FUNCTIONS AND DUTIES OF PROMOTER 

11.  Functions and duties of promoter. 
12.  Obligations of promoter regarding veracity of the advertisement or prospectus. 
13.  No deposit or advance to be taken by promoter without first entering into agreement for sale. 
14.  Adherence to sanctioned plans and project specifications by the promoter. 
15.  Obligations of promoter in case of transfer of a real estate project to a third party. 
16.  Obligations of promoter regarding insurance of real estate project. 
17.  Transfer of title. 
18.  Return of amount and compensation. 

19.  Rights and duties of allottees. 

CHAPTER IV 
RIGHTS AND DUTIES OF ALLOTTEES 

CHAPTET V 
THE REAL ESTATE REGULATORY AUTHORITY 

20.  Establishment and incorporation of Real Estate Regulatory Authority. 
21.  Composition of Authority. 
22.  Qualifications of Chairperson and Members of Authority. 
23.  Term of office of Chairperson and Members. 

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SECTIONS 

24.  Salary and allowances payable to Chairperson and Members. 
25.  Administrative powers of Chairperson. 
26.  Removal of Chairperson and Members from office in certain circumstances. 
27.  Restrictions on Chairperson or Members on employment after cessation of office. 
28.  Officers and other employees of Authority. 
29.  Meetings of Authority. 
30.  Vacancies, etc., not to invalidate proceeding of Authority. 
31.  Filing of complaints with the Authority or the adjudicating officer. 
32.  Functions of Authority for promotion of real estate sector. 
33.  Advocacy and awareness measures. 
34.  Functions of Authority. 
35.  Powers of Authority to call for information, conduct investigations. 
36.  Power to issue interim orders. 
37.  Powers of Authority to issue directions. 
38.  Powers of Authority. 
39.  Rectification of orders. 
40.  Recovery of interest or penalty or compensation and enforcement of order, etc. 

CHAPTER VI 
CENTRAL ADVISORY COUNCIL 

41.  Establishment of Central Advisory Council. 
42.  Functions of Central Advisory Council. 

CHAPTER VII 
THE REAL ESTATE APPELLATE TRIBUNAL 

43.  Establishment of Real Estate Appellate Tribunal. 
44.  Application for settlement of disputes and appeals to Appellate Tribunal. 
45.  Composition of Appellate Tribunal. 
46.  Qualifications for appointment of Chairperson and Members. 
47.  Term of office of Chairperson and Members. 
48.  Salary and allowances payable to Chairperson and Members. 
49.  Removal of Chairperson and Member from office in certain circumstances. 
50.  Restrictions on Chairperson or Judicial Member or Technical or Administrative Member on 

employment after cessation of office. 

51.  Officers and other employees of Appellate Tribunal. 
52.  Vacancies. 
53.  Powers of Tribunal. 
54.  Administrative powers of Chairperson of Appellate Tribunal. 
55.  Vacancies, etc., not to invalidate proceeding of Appellate Tribunal. 
56.  Right to legal representation. 
57.  Orders passed by Appellate Tribunal to be executable as a decree. 
58.  Appeal to High Court. 

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CHAPTER VIII 
OFFENCES, PENALTIES AND ADJUDICATION 

SECTIONS 

59.  Punishment for nonregistration under section 3. 
60.  Penalty for contravention of section 4. 
61.  Penalty for contravention of other provisions of this Act. 
62.  Penalty for nonregistration and contravention under sections 9 and 10. 
63.  Penalty for failure to comply with orders of Authority by promoter. 
64.  Penalty for failure to comply with orders of Appellate Tribunal by promoter. 
65.  Penalty for failure to comply with orders of Authority by real estate agent. 
66.  Penalty for failure to comply with orders of Appellate Tribunal by real estate agent. 
67.  Penalty for failure to comply with orders of Authority by allottee. 
68.  Penalty for failure to comply with orders of Appellate Tribunal by allottee. 
69.  Offences by companies. 
70.  Compounding of offences. 
71.  Power to adjudicate. 
72.  Factors to be taken into account by the adjudicating officer. 

CHAPTER IX 
FINANCE, ACCOUNTS, AUDITS AND REPORTS 

73.  Grants and loans by Central Government. 
74.  Grants and loans by State Government. 
75.  Constitution of Fund. 
76.  Crediting sums realised by way of penalties to Consolidated Fund of India or State account. 
77.  Budget, accounts and audit. 
78.  Annual report. 

CHAPTER X 
MISCELLANEOUS 

79.  Bar of jurisdiction. 
80.  Cognizance of offences. 
81.  Delegation. 
82.  Power of appropriate Government to supersede Authority. 
83.  Powers of appropriate Government to issue directions to Authority and obtain reports and returns. 
84.  Power of appropriate Government to make rules. 
85.  Power to make regulations. 
86.  Laying of rules. 
87.  Members, etc., to be public servants. 
88.  Application of other laws not barred. 
89.  Act to have overriding effect. 
90.  Protection of action taken in good faith. 
91.  Power to remove difficulties. 
92.  Repeal. 

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THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 

ACT NO. 16 OF 2016 

[25th March, 2016.]  

An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real 
estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real 
estate project, in an efficient and transparent manner and to protect the interest of consumers in 
the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and 
also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of 
the  Real  Estate  Regulatory  Authority  and  the  adjudicating  officer  and  for  matters  connected 
therewith or incidental thereto.  

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:—  

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the Real Estate (Regulation 

and Development) Act, 2016. 

(2) It extends to the whole of India except the State of Jammu and Kashmir*. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint: 

Provided that different dates may be appointed for different provisions of this Act and any reference 
in any such provision to the commencement of this Act shall be construed as a reference to the coming 
into force of that provision. 

 2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  “adjudicating  officer”  means  the  adjudicating  officer  appointed  under  sub-section  (1)  of 

section 71; 

(b)  “advertisement”  means  any  document  described  or  issued  as  advertisement  through  any 
medium  and  includes  any  notice,  circular  or  other  documents  or  publicity  in  any  form,  informing 
persons  about  a  real  estate  project,  or  offering  for  sale  of  a  plot,  building  or  apartment  or  inviting 
persons to purchase in any manner such plot, building or apartment or to make advances or deposits 
for such purposes; 

(c) “agreement for sale” means an agreement entered into between the promoter and the allottee; 

(d) “allottee” in relation to a real estate project, means the person to whom a plot, apartment or 
building, as the case may be, has been allotted, sold (whether as freehold or leasehold) or otherwise 
transferred  by  the  promoter,  and  includes  the  person  who  subsequently  acquires  the  said  allotment 
through  sale,  transfer  or  otherwise  but  does  not  include  a  person  to  whom  such  plot,  apartment  or 
building, as the case may be, is given on rent; 

(e)  “apartment”  whether  called  block,  chamber,  dwelling  unit,  flat,  office,  showroom,  shop, 
godown, premises, suit, tenement, unit or by any other name, means a separate and self-contained part 
of any immovable property, including one or more rooms or enclosed spaces, located on one or more 
floors  or  any  part  thereof,  in  a  building  or  on  a  plot  of  land,  used  or  intended  to  be  used  for  any 
residential or commercial use such as residence, office, shop, showroom or godown or for carrying on 
any  business,  occupation,  profession  or  trade,  or  for  any  other  type  of  use  ancillary  to  the  purpose 
specified; 

(f) “Appellate Tribunal” means the Real Estate Appellate Tribunal established under section 43; 

1. 1st May, 2016,  vide notification No. S.O. 1544(E), (Except ss. 3 to 19, 40, 59 to 70, 79 & 80) dated 26th April, 2016,  see 

Gazette of India, Extraordinary, Part II, sec. 3(ii). 

*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and 

Kashmir and the Union territory of Ladakh. 

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(g) “appropriate Government” means in respect of matters relating to,— 

(i) the Union territory without Legislature, the Central Government; 
(ii)  the  Union  territory  of  1[Puducherry  and  Union  territory  of  Jammu  and  Kashmir],  the 

Union territory Government; 

(iii) the Union territory of Delhi, the Central Ministry of Urban Development; 

(iv) the State, the State Government; 

(h)  “architect”  means  a  person  registered  as  an  architect  under  the  provisions  of  the  Architects 

Act, 1972 (20 of 1972); 

(i) “Authority” means the Real Estate Regulatory Authority established under sub-section (1) of 

section 20; 

(j) “building” includes any structure or erection or part of a structure or erection which is intended 
to be used for residential, commercial or for the purpose of any business, occupation, profession or 
trade, or for any other related purposes; 

(k) “carpet area” means the net usable floor area of an apartment, excluding the area covered by 
the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open 
terrace area, but includes the area covered by the internal partition walls of the apartment. 

 Explanation.—  For  the  purpose  of  this  clause,  the  expression  “exclusive  balcony  or  verandah 
area” means the area of the balcony or verandah, as the case may be, which is appurtenant to the net 
usable  floor  area  of  an  apartment,  meant  for  the  exclusive  use  of  the  allottee;  and  “exclusive  open 
terrace area” means the area of open terrace which is appurtenant to the net usable floor area of an 
apartment, meant for the exclusive use of the allottee; 

(l) “Chairperson” means the Chairperson of the Real Estate Regulatory Authority appointed under 

section 21; 

(m) “commencement certificate” means the commencement certificate or the building permit or 
the  construction  permit,  by  whatever  name  called  issued  by  the  competent  authority  to  allow  or 
permit  the  promoter  to  begin  development  works  on  an  immovable  property,  as  per  the  sanctioned 
plan; 

(n) “common areas” mean— 

(i) the entire land for the real estate project or where the project is developed in phases and 

registration under this Act is sought for a phase, the entire land for that phase; 

(ii)  the  stair  cases,  lifts,  staircase  and  lift  lobbies,  fire  escapes,  and  common  entrances  and 

exits of buildings; 

(iii)  the  common  basements,  terraces,  parks,  play  areas,  open  parking  areas  and  common 

storage spaces; 

(iv)  the  premises  for  the  lodging  of  persons  employed  for  the  management  of  the  property 
including  accommodation  for  watch  and  ward  staffs  or  for  the  lodging  of  community  service 
personnel; 

(v)  installations  of  central  services  such  as  electricity,  gas,  water  and  sanitation,  

air-conditioning and incinerating, system for water conservation and renewable energy; 

(vi)  the  water  tanks,  sumps,  motors,  fans,  compressors,  ducts  and  all  apparatus  connected 

with installations for common use; 

(vii) all community and commercial facilities as provided in the real estate project; 

(viii) all other portion of the project necessary or convenient for its maintenance, safety, etc., 

and in common use; 

1. Subs. by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, vide notification No. S.O.  

1123(E) dated (18-3-2020). 

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(o)  “company”  means  a  company  incorporated  and  registered  under  the  Companies  Act,  2013 

(18 of 2013) and includes,— 

(i) a corporation established by or under any Central Act or State Act; 

(ii)  a  development  authority  or  any  public  authority  established  by  the  Government  in  this 

behalf under any law for the time being in force; 

(p) “competent authority” means the local authority or any authority created or established under 
any  law  for  the  time  being  in  force  by  the  appropriate  Government  which  exercises  authority  over 
land  under  its jurisdiction,  and  has  powers  to  give  permission  for  development  of  such  immovable 
property; 

(q)  “completion  certificate”  means  the  completion  certificate,  or  such  other  certificate,  by 
whatever  name  called,  issued  by  the  competent  authority  certifying  that  the  real  estate  project  has 
been developed according to the sanctioned plan, layout plan and specifications, as approved by the 
competent authority under the local laws; 

(r) “day” means the working day, in the concerned State or Union territory, as the case may be, 

notified by the appropriate Government from time to time; 

(s) “development” with its grammatical variations and cognate expressions, means carrying out 
the  development  of  immovable  property,  engineering  or  other  operations  in,  on,  over  or  under  the 
land  or  the  making  of  any  material  change  in  any  immovable  property  or  land  and  includes  re-
development; 

(t) “development works” means the external development works and internal development works 

on immovable property; 

(u)  “engineer”  means  a  person  who  possesses  a  bachelor’s  degree  or  equivalent  from  an 
institution  recognised  by  the  All  India  Council  of  Technical  Education  or  any  University  or  any 
institution recognised under a law or is registered as an engineer under any law for the time being in 
force; 

(v)  “estimated  cost  of  real  estate  project”  means  the  total  cost  involved  in  developing  the  real 

estate project and includes the land cost, taxes, cess, development and other charges; 

(w)  “external  development  works”  includes  roads  and  road  systems  landscaping,  water  supply, 
sewerage and drainage systems, electricity supply transformer, sub-station, solid waste management 
and  disposal  or  any  other  work  which  may  have  to  be  executed  in  the  periphery  of,  or  outside,  a 
project for its benefit, as may be provided under the local laws; 

(x) “family” includes husband, wife, minor son and unmarried daughter wholly dependent on a 

person; 

(y) “garage” means a place within a project having a roof and walls on three sides for parking any 

vehicle, but does not include an unenclosed or uncovered parking space such as open parking areas; 

(z)  “immovable  property”  includes  land,  buildings,  rights  of  ways,  lights  or  any  other  benefit 
arising  out  of  land  and  things  attached  to  the  earth  or  permanently  fastened  to  anything  which  is 
attached to the earth, but not standing timber, standing crops or grass; 

(za) “interest” means the rates of interest payable by the promoter or the allottee, as the case may 

be. 

Explanation.—For the purpose of this clause— 

(i) the rate of interest chargeable from the allottee by the promoter, in case of default, shall be 
equal  to  the  rate  of  interest  which  the  promoter  shall  be  liable  to  pay  the  allottee,  in  case  of 
default; 

(ii) the interest  payable  by  the  promoter  to  the  allottee  shall be  from  the  date the  promoter 
received  the  amount  or  any  part  thereof  till  the  date  the  amount  or  part  thereof  and  interest 

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thereon is refunded, and the interest payable by the allottee to the promoter shall be from the date 
the allottee defaults in payment to the promoter till the date it is paid; 

(zb)  “internal  development  works”  means  roads, footpaths,  water  supply,  sewers,  drains,  parks, 
tree  planting,  street  lighting,  provision  for  community  buildings  and  for  treatment  and  disposal  of 
sewage  and  sullage  water,  solid  waste  management  and  disposal,  water  conservation,  energy 
management,  fire  protection  and  fire  safety  requirements,  social  infrastructure  such  as  education 
health  and  other  public  amenities  or  any  other  work  in  a  project  for  its  benefit,  as  per  sanctioned 
plans; 

(zc)  “local  authority”  means  the  Municipal  Corporation  or  Municipality  or  Panchayats  or  any 
other  Local  Body  constituted  under  any  law  for  the  time  being  in  force  for  providing  municipal 
services or basic services, as the case may be, in respect of areas under its jurisdiction; 

(zd)  “Member”  means  the  member  of  the  Real  Estate  Regulatory  Authority  appointed  under 

section 21 and includes the Chairperson; 

(ze)  “notification”  means  a  notification  published  in  the  Official  Gazette  and  the  expression 

“notify” shall be construed accordingly; 

(zf)  “occupancy  certificate”  means  the  occupancy  certificate,  or  such  other  certificate,  by 
whatever  name  called,  issued  by  the  competent  authority  permitting  occupation of  any  building,  as 
provided under local laws, which has provision for civic infrastructure such as water, sanitation and 
electricity; 

(zg) “Person” includes,— 

(i) an individual; 

(ii) a Hindu undivided family; 

(iii) a company; 

(iv)  a  firm  under  the  Indian  Partnership  Act,  1932  (9  of  1932)  or  the  Limited  Liability 

Partnership Act, 2008 (6 of 2009), as the case may be; 

(v) a competent authority; 

(vi) an association of persons or a body of individuals whether incorporated or not; 

(vii) a co-operative society registered under any law relating to co-operative societies; 

(viii) any such other entity as the appropriate Government may, by notification, specify in this 

behalf; 

(zh) “planning area” means a planning area or a development area or a local planning area or a 
regional development plan area, by whatever name called, or any other area specified as such by the 
appropriate  Government  or  any  competent  authority  and  includes  any  area  designated  by  the 
appropriate  Government  or  the  competent  authority  to  be  a  planning  area  for  future  planned 
development, under the law relating to Town and Country Planning for the time being in force and as 
revised from time to time; 

(zi) “prescribed” means prescribed by rules made under this Act; 

(zj) “project” means the real estate project as defined in clause (zn); 

(zk) “promoter” means,— 

(i) a person who constructs or causes to be constructed an independent building or a building 
consisting of apartments, or converts an existing building or a part thereof into apartments, for the 
purpose of selling all or some of the apartments to other persons and includes his assignees; or 

(ii)  a  person  who  develops  land  into  a  project,  whether  or  not  the  person  also  constructs 
structures on any of the plots, for the purpose of selling to other persons all or some of the plots in 
the said project, whether with or without structures thereon; or 

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(iii) any development authority or any other public body in respect of allottees of— 

(a) buildings or apartments, as the case may be, constructed by such authority or body on 

lands owned by them or placed at their disposal by the Government; or  

(b) plots owned by such authority or body or placed at their disposal by the Government, 

for the purpose of selling all or some of the apartments or plots; or  

(iv)  an  apex  State  level  co-operative  housing  finance  society  and  a  primary  co-operative 
housing  society  which  constructs  apartments  or  buildings  for  its  Members  or  in  respect  of  the 
allottees of such apartments or buildings; or 

(v)  any  other  person  who  acts  himself  as  a  builder,  coloniser,  contractor,  developer,  estate 
developer or by any other name or claims to be acting as the holder of a power of attorney from 
the owner of the land on which the building or apartment is constructed or plot is developed for 
sale; or 

(vi) such other person who constructs any building or apartment for sale to the general public.  

Explanation.—For the purposes of this clause, where the person who constructs or converts a 
building into apartments or develops a plot for sale and the person who sells apartments or plots 
are different person, both of them shall be deemed to be the promoters and shall be jointly liable 
as such for the functions and responsibilities specified under this Act or the rules and regulations 
made thereunder;  

(zl) “prospectus” means any document described or issued as a prospectus or any notice, circular, 
or other document offering for sale of any real estate project or inviting any person to make advances 
or deposits for such purposes; 

(zm) “real estate agent” means any person, who negotiates or acts on behalf of one person in a 
transaction of transfer of his plot, apartment or building, as the case may be, in a real estate project, 
by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of 
any  other  person  to  him  and  receives  remuneration  or  fees  or  any  other  charges  for  his  services 
whether as a commission or otherwise and includes a person who introduces, through any medium, 
prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or 
building, as the case may be, and includes property dealers, brokers, middlemen by whatever name 
called; 

(zn)  “real  estate  project”  means  the  development  of  a  building  or  a  building  consisting  of 
apartments, or converting an existing building or a part thereof into apartments, or the development of 
land into plots or apartments, as the case may be, for the purpose of selling all or some of the said 
apartments or plots or building, as the case may be, and includes the common areas, the development 
works, all improvements and structures thereon, and all easement, rights and appurtenances belonging 
thereto; 

(zo) “regulations” means the regulations made by the Authority under this Act; 

(zp) “rule” means the rules made under this Act by the appropriate Government; 

(zq)  “sanctioned  plan”  means  the  site  plan,  building  plan,  service  plan,  parking  and  circulation 
plan, landscape plan, layout plan, zoning plan and such other plan and includes structural designs, if 
applicable,  permissions  such  as  environment  permission  and  such  other  permissions,  which  are 
approved by the competent authority prior to start of a real estate project; 

(zr) words and expressions used herein but not defined in this Act and defined in any law for the 
time  being  in  force  or  in  the  municipal  laws  or  such  other  relevant  laws  of  the  appropriate 
Government shall have the same meanings respectively assigned to them in those laws. 

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CHAPTER II 

REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS 

3.  Prior  registration  of  real  estate  project  with  Real  Estate  Regulatory  Authority.—(1)  No 
promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner 
any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning 
area,  without  registering  the  real  estate  project  with  the  Real  Estate  Regulatory  Authority  established 
under this Act: 

Provided that projects that are ongoing on the date of commencement of this Act and for which the 
completion  certificate  has not  been  issued, the  promoter shall  make  an  application  to the  Authority  for 
registration of the said project within a period of three months from the date of commencement of this 
Act: 

Provided further that if the Authority thinks necessary, in the interest of allottees, for projects which 
are developed beyond the planning area but with the requisite permission of the local authority, it may, by 
order, direct the promoter of such project to register with the Authority, and the provisions of this Act or 
the rules and regulations made thereunder, shall apply to such projects from that stage of registration. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  no  registration  of  the  real  estate  project 

shall be required— 

(a) where the area of land proposed to be developed does not exceed five hundred square meters 

or the number of apartments proposed to be developed does not exceed eight inclusive of all phases: 

Provided that, if the appropriate Government considers it necessary, it may, reduce the threshold 
below five hundred square meters or eight apartments, as the case may be, inclusive of all phases, for 
exemption from registration under this Act; 

(b)  where  the  promoter  has  received  completion  certificate  for  a  real  estate  project  prior  to 

commencement of this Act; 

(c) for the purpose of renovation or repair or re-development which does not involve marketing, 
advertising selling or new allotment of any apartment, plot or building, as the case may be, under the 
real estate project. 

Explanation.—For the purpose of this section, where the real estate project is to be developed in 
phases, every such phase shall be considered a stand alone real estate project, and the promoter shall 
obtain registration under this Act for each phase separately. 

4.  Application  for  registration  of  real  estate  projects.—(1)  Every  promoter  shall  make  an 
application to the Authority for registration of the real estate project in such form, manner, within  such 
time and accompanied by such fee as may be 1[prescribed]. 

(2)  The  promoter  shall  enclose  the  following  documents  along  with  the  application  referred  to  in  

sub-section (1), namely:— 

(a)  a  brief  details  of  his  enterprise  including  its  name,  registered  address,  type  of  enterprise 
(proprietorship,  societies,  partnership,  companies,  competent  authority),  and  the  particulars  of 
registration, and the names and photographs of the promoter; 

(b)  a  brief  detail  of  the  projects  launched  by  him,  in  the  past  five  years,  whether  already 
completed or being developed, as the case may be, including the current status of the said projects, 
any delay in its completion, details of cases pending, details of type of land and payments pending; 

(c)  an  authenticated  copy  of  the  approvals  and  commencement  certificate  from  the  competent 
authority  obtained  in  accordance  with  the  laws  as  may  be  applicable  for  the  real  estate  project 
mentioned  in  the  application,  and  where  the  project  is  proposed  to  be  developed  in  phases,  an 
authenticated copy of the approvals and commencement certificate from the competent authority for 
each of such phases; 

1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347 (E)], for “specified by 

the regulations made by the Authority” (w.e.f. 28-10-2016). 

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(d)  the  sanctioned  plan,  layout  plan  and  specifications  of  the  proposed  project  or  the  phase 

thereof, and the whole project as sanctioned by the competent authority; 

(e)  the  plan  of  development  works  to  be  executed  in  the  proposed  project  and  the  proposed 
facilities to be provided thereof including fire fighting facilities, drinking water facilities, emergency 
evacuation services, use of renewable energy; 

(f)  the  location  details  of  the  project,  with  clear  demarcation  of  land  dedicated  for  the  project 

along with its boundaries including the latitude and longitude of the end points of the project; 

(g) proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be 

signed with the allottees; 

(h) the number, type and the carpet area of apartments for sale in the project along with the area 
of the exclusive balcony or verandah areas and the exclusive open terrace areas appurtenant with the 
apartment, if any; 

(i) the number and area of garage for sale in the project; 

(j) the names and addresses of his real estate agents, if any, for the proposed project; 

(k)  the  names  and  addresses  of  the  contractors,  architect,  structural  engineer,  if  any  and  other 

persons concerned with the development of the proposed project; 

(l) a declaration, supported by an affidavit, which shall be signed by the promoter or any person 

authorised by the promoter, stating:— 

(A)  that  he  has  a  legal  title  to  the  land  on  which  the  development  is  proposed  along  with 
legally valid documents with authentication of such title, if such land is owned by another person; 

(B)  that  the  land  is  free  from  all  encumbrances,  or  as  the  case  may  be  details  of  the 
encumbrances  on  such  land  including  any  rights,  title,  interest  or  name  of  any  party  in  or  over 
such land along with details; 

(C) the time period within which he undertakes to complete the project or phase thereof, as 

the case may be; 

(D) that seventy per cent. of the amounts realised for the real estate project from the allottees, 
from time to time, shall be deposited in a separate account to be maintained in a scheduled bank 
to cover the cost of construction and the land cost and shall be used only for that purpose: 

Provided that the promoter shall withdraw the amounts from the separate account, to cover 

the cost of the project, in proportion to the percentage of completion of the project: 

Provided  further  that  the  amounts  from  the  separate  account  shall  be  withdrawn  by  the 
promoter after it  is  certified  by  an engineer, an architect  and  a  chartered  accountant in  practice 
that the withdrawal is in proportion to the percentage of completion of the project: 

Provided also that the promoter shall get his accounts audited within six months after the end 
of  every  financial  year  by  a  chartered  accountant  in  practice,  and  shall  produce  a  statement  of 
accounts duly certified and signed by such chartered accountant and it shall be verified during the 
audit that the amounts collected for a particular project have been utilised for that project and the 
withdrawal  has  been  in  compliance  with  the  proportion  to  the  percentage  of  completion  of  the 
project. 

Explanation.—For  the  purpose  of  this  clause,  the  term  “scheduled  bank”  means  a  bank 

included in the Second Scheduled to the Reserve Bank of India Act, 1934 (2 of 1934); 

(E) that he shall take all the pending approvals on time, from the competent authorities; 

(F)  that  he  has  furnished  such  other  documents  as  may  be  prescribed  by  the  rules  or 

regulations made under this Act; and 

(m) such other information and documents as may be prescribed.  

10 

 
(3)  The  Authority  shall  operationalise  a  web  based  online  system  for  submitting  applications  for 

registration of projects within a period of one year from the date of its establishment. 

5. Grant of registration.—(1) On receipt of the application under sub-section (1) of section 4, the 

Authority shall within a period of thirty days. 

(a)  grant  registration  subject  to  the  provisions  of  this  Act  and  the  rules  and  regulations  made 
thereunder, and provide a registration number, including a Login Id and password to the applicant for 
accessing the website of the Authority and to create his web page and to fill therein the details of the 
proposed project; or 

(b)  reject  the  application  for  reasons  to  be  recorded  in  writing,  if  such  application  does  not 

conform to the provisions of this Act or the rules or regulations made thereunder: 

Provided that no application shall be rejected unless the applicant has been given an opportunity 

of being heard in the matter. 

(2)  If  the  Authority  fails  to  grant  the  registration  or  reject  the  application,  as  the  case  may  be,  as 
provided under sub-section (1), the project shall be deemed to have been registered, and the Authority 
shall  within  a  period  of  seven  days  of  the  expiry  of  the  said  period  of  thirty  days  specified  under  
sub-section (1), provide a registration number and a Login Id and password to the promoter for accessing 
the  website  of the  Authority  and  to  create  his  web  page  and  to  fill  therein  the details  of the  proposed 
project. 

(3) The  registration  granted  under  this  section  shall be  valid  for  a  period  declared  by  the  promoter 
under sub-clause (C) of clause (l) of sub-section (2) of section 4 for completion of the project or phase 
thereof, as the case may be. 

6.  Extension  of  registration.—The  registration  granted  under  section  5  may  be  extended  by  the 
Authority on an application made by the promoter, due to force majeure, in such form and on payment of 
such fee as may be 1[prescribed]: 

Provided  that  the  Authority  may  in  reasonable  circumstances,  without  default  on  the  part  of  the 
promoter,  based  on  the  facts  of  each  case,  and  for  reasons  to  be  recorded  in  writing,  extend  the 
registration  granted  to  a  project  for such time  as it  considers  necessary,  which shall, in  aggregate,  not 
exceed a period of one year: 

Provided further that no application for extension of registration shall be rejected unless the applicant 

has been given an opportunity of being heard in the matter. 

 Explanation.— For the purpose of this section, the expression “force majeure” shall mean a case of 
war,  flood,  drought,  fire,  cyclone,  earthquake  or  any  other  calamity  caused  by  nature  affecting  the 
regular development of the real estate project.  

7. Revocation of registration.—(1) The Authority may, on receipt of a complaint or suomotu in this 
behalf or on the recommendation of the competent authority, revoke the registration granted under section 
5, after being satisfied that— 

(a) the promoter makes default in doing anything required by or under this Act or the rules or the 

regulations made thereunder; 

(b) the promoter violates any of the terms or conditions of the approval given by the competent 

authority; 

(c) the promoter is involved in any kind of unfair practice or irregularities. 

Explanation.—For the purposes of this clause, the term “unfair practice means” a practice which, for 
the purpose of promoting the sale or development of any real estate project adopts any unfair method or 
unfair or deceptive practice including any of the following practices, namely:—  

(A) the practice of making any statement, whether in writing or by visible representation which,— 

(i) falsely represents that the services are of a particular standard or grade; 

1.  Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347 (E)], for “specified 

by regulations made by the Authority” (w.e.f. 28-10-2016). 

11 

 
 
                                                           
(ii)  represents  that  the  promoter  has  approval  or  affiliation  which  such  promoter  does  not 

have; 

(iii) makes a false or misleading representation concerning the services; 

(B)  the  promoter  permits  the  publication  of  any  advertisement  or  prospectus  whether  in  any 

newspaper or otherwise of services that are not intended to be offered; 

(d) the promoter indulges in any fraudulent practices. 

(2) The registration granted to the promoter under section 5 shall not be revoked unless the Authority 
has given to the promoter not less than thirty days notice, in writing, stating the grounds on which it is 
proposed  to  revoke  the  registration,  and  has  considered  any  cause  shown  by  the  promoter  within  the 
period of that notice against the proposed revocation. 

(3) The Authority may, instead of revoking the registration under sub-section (1), permit it to remain 
in  force  subject  to  such  further  terms  and  conditions  as  it  thinks  fit  to  impose  in  the  interest  of  the 
allottees, and any such terms and conditions so imposed shall be binding upon the promoter. 

(4) The Authority, upon the revocation of the registration,— 

(a) shall debar the promoter from accessing its website in relation to that project and specify his 
name in the list of defaulters and display his photograph on its website and also inform the other Real 
Estate  Regulatory  Authority  in  other  States  and  Union  territories  about  such  revocation  or 
registration; 

(b)  shall  facilitate  the  remaining  development  works  to  be  carried  out  in  accordance  with  the 

provisions of section 8; 

(c) shall direct the bank holding the project bank account, specified under sub-clause(D) of clause 
(l)  of  sub-section  (2)  of  section  4,  to  freeze  the  account,  and  thereafter  take  such  further  necessary 
actions,  including  consequent  de-freezing  of  the  said  account,  towards  facilitating  the  remaining 
development works in accordance with the provisions of section 8; 

(d) may, to protect the interest of allottees or in the public interest, issue such directions as it may 

deem necessary. 

8.  Obligation  of  Authority  consequent  upon  lapse  of  or  on  revocation  of  registration.—Upon 
lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the 
appropriate Government to take such action as it may deem fit including the carrying out of the remaining 
development works by competent authority or by the association of allottees or in any other manner, as 
may be determined by the Authority: 

Provided that no direction, decision or order of the Authority under this section shall take effect until 

the expiry of the period of appeal provided under the provisions of this Act: 

Provided further that in case of revocation of registration of a project under this Act, the association 

of allottees shall have the first right of refusal for carrying out of the remaining development works.  

9. Registration of real estate agents.—(1) No real estate agent shall facilitate the sale or purchase of 
or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the 
case may be, in a real estate project or part of it, being the part of the real estate project registered under 
section  3,  being  sold  by  the  promoter  in  any  planning  area,  without  obtaining  registration  under  this 
section.  

(2) Every real estate agent shall make an application to the Authority for registration in such form, 

manner, within such time and accompanied by such fee and documents as may be prescribed. 

(3)  The  Authority  shall,  within  such  period,  in  such  manner  and  upon  satisfying  itself  of  the 

fulfilment of such conditions, as may be prescribed— 

(a) grant a single registration to the real estate agent for the entire State or Union territory, as the 

case may be; 

12 

 
 
(b)  reject  the  application  for  reasons  to  be  recorded  in  writing,  if  such  application  does  not 

conform to the provisions of the Act or this rules or regulations made thereunder: 

Provided that no application shall be rejected unless the applicant has been given an opportunity of 

being heard in the matter. 

(4) Whereon the completion of the period specified under sub-section (3), if the applicant does not 
receive any communication about the deficiencies in his application or the rejection of his application, he 
shall be deemed to have been registered. 

(5)  Every  real  estate  agent  who  is  registered  as  per  the  provisions  of  this  Act  or  the  rules  and 
regulations  made  thereunder,  shall  be  granted  a  registration  number  by  the  Authority,  which  shall  be 
quoted by the real estate agent in every sale facilitated by him under this Act. 

(6) Every registration shall be valid for such period as may be prescribed, and shall be renewable for a 

period in such manner and on payment of such fee as may be prescribed. 

(7) Where any real estate agent who has been granted registration under this Act commits breach of 
any of the conditions thereof or any other terms and conditions specified under this Act or any rules or 
regulations made thereunder, or where the Authority is satisfied that such registration has been secured by 
the real estate agent through misrepresentation or fraud, the Authority may, without prejudice to any other 
provisions under this Act, revoke the registration or suspend the same for such period as it thinks fit: 

Provided that no such revocation or suspension shall be made by the Authority unless an opportunity 

of being heard has been given to the real estate agent. 

10. Functions of real estate agents.—Every real estate agent registered under section 9 shall— 

(a) not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a 
real  estate  project  or  part  of  it,  being  sold  by  the  promoter  in  any  planning  area,  which  is  not 
registered with the Authority; 

(b) maintain and preserve such books of account, records and documents as may be prescribed; 

(c) not involve himself in any unfair trade practices, namely:— 

(i)  the  practice  of  making  any  statement,  whether  orally  or  in  writing  or  by  visible 

representation which— 

(A) falsely represents that the services are of a particular standard or grade; 

(B)  represents  that  the  promoter  or  himself  has  approval  or  affiliation  which  such 

promoter or himself does not have; 

(C) makes a false or misleading representation concerning the services; 

(ii) permitting the publication of any advertisement whether in any newspaper or otherwise of 

services that are not intended to be offered. 

(d) facilitate the possession of all the information and documents, as the allottee, is entitled to, at 

the time of booking of any plot, apartment or building, as the case may be; 

(e) discharge such other functions as may be prescribed.  

CHAPTER III 

FUNCTIONS AND DUTIES OF PROMOTER 

11.  Functions  and  duties of  promoter.—(1) The  promoter  shall,  upon  receiving  his  Login  Id  and 
password under clause (a) of sub-section (1) or under sub-section (2) of section 5, as the case may be, 
create  his  web  page  on  the  website  of  the  Authority  and  enter  all  details  of  the  proposed  project  as 
provided under sub-section (2) of section 4, in all the fields as provided, for public viewing, including— 

(a) details of the registration granted by the Authority; 

13 

 
(b) quarterly up-to-date the list of number and types of apartments or plots, as the case may be, 

booked; 

(c) quarterly up-to-date the list of number of garages booked; 

(d)  quarterly  up-to-date  the  list  of  approvals  taken  and  the  approvals  which  are  pending 

subsequent to commencement certificate; 

(e) quarterly up-to-date status of the project; and 

(f)  such  other  information  and  documents  as  may  be  specified  by  the  regulations  made  by  the 

Authority. 

(2) The advertisement or prospectus issued or published by the promoter shall mention prominently 
the website address of the Authority, wherein all details of the registered project have been entered and 
include the registration number obtained from the Authority and such other matters incidental thereto. 

(3) The promoter, at the time of the booking and issue of allotment letter shall be responsible to make 

available to the allottee, the following information, namely:— 

(a)  sanctioned  plans,  layout  plans,  along  with  specifications,  approved  by  the  competent 
authority, by display at the site or such other place as may be specified by the regulations made by the 
Authority; 

(b) the stage wise time schedule of completion of the project, including the provisions for civic 

infrastructure like water, sanitation and electricity. 

(4) The promoter shall— 

(a) be responsible for all obligations,  responsibilities and functions under the provisions of this 
Act or the rules and regulations made thereunder or to the allottees as per the agreement for sale, or to 
the  association  of  allottees,  as  the  case  may  be,  till  the  conveyance  of  all  the  apartments,  plots  or 
buildings, as the case may be, to the allottees, or the common areas to the association of allottees or 
the competent authority, as the case may be: 

Provided that the responsibility of the promoter, with respect to the structural defect or any other 
defect for such period as is referred to in sub-section (3) of section 14, shall continue even after the 
conveyance  deed  of  all  the  apartments,  plots  or  buildings,  as  the  case  may  be,  to  the  allottees  are 
executed. 

(b)  be  responsible  to  obtain  the  completion  certificate  or  the  occupancy  certificate,  or  both,  as 
applicable, from the relevant competent authority as per local laws or other laws for the time being in 
force and to make it available to the allottees individually or to the association of allottees, as the case 
may be; 

(c) be responsible to obtain the lease certificate, where the real estate project is developed on a 
leasehold land, specifying the period of lease, and certifying that all dues and charges in regard to the 
leasehold land has been paid, and to make the lease certificate available to the association of allottees; 

(d) be responsible for providing and maintaining the essential services, on reasonable charges, till 

the taking over of the maintenance of the project by the association of the allottees; 

(e) enable the formation of an association or society or co-operative society, as the case may be, 

of the allottees, or a federation of the same, under the laws applicable: 

Provided that in the absence of local laws, the association of allottees, by whatever name called, 
shall be formed within a period of three months of the majority of allottees having booked their plot 
or apartment or building, as the case may be, in the project; 

(f) execute a registered conveyance deed of the apartment, plot or building, as the case may be, in 
favour  of  the  allottee  along  with  the  undivided  proportionate  title  in  the  common  areas  to  the 
association of allottees or competent authority, as the case may be, as provided under section 17 of 
this Act; 

14 

 
(g)  pay  all  outgoings  until  he  transfers  the  physical  possession  of  the  real  estate  project  to  the 
allottee or the associations of allottees, as the case may be, which he has collected from the allottees, 
for the payment of outgoings (including land cost, ground rent, municipal or other local taxes, charges 
for water or electricity, maintenance charges, including mortgage loan and interest on mortgages or 
other  encumbrances  and  such  other  liabilities  payable  to  competent  authorities,  banks  and  financial 
institutions, which are related to the project): 

Provided that where any promoter fails to pay all or any of the outgoings collected by him from 
the  allottees  or  any  liability,  mortgage  loan  and  interest  thereon  before  transferring  the  real  estate 
project  to  such  allottees,  or  the  association  of  the  allottees,  as  the  case  may  be,  the  promoter  shall 
continue to be liable, even after the transfer of the property, to pay such outgoings and penal charges, 
if  any,  to  the  authority  or  person  to  whom  they  are  payable  and  be  liable  for  the  cost  of  any  legal 
proceedings which may be taken therefor by such authority or person; 

(h) after he executes an agreement for sale for any apartment, plot or building, as the case may be, 
not mortgage or create a charge on such apartment, plot or building, as the case may be, and if any 
such mortgage or charge is made or created then notwithstanding anything contained in any other law 
for the time being in force, it shall not affect the right and interest of the allottee who has taken or 
agreed to take such apartment, plot or building, as the case may be; 

(5) The promoter may cancel the allotment only in terms of the agreement for sale: 

Provided  that  the  allottee  may  approach  the  Authority  for  relief,  if  he  is  aggrieved  by  such 
cancellation and such cancellation is not in accordance with the terms of the agreement for sale, unilateral 
and without any sufficient cause. 

(6) The promoter shall prepare and maintain all such other details as may be specified, from time to 

time, by regulations made by the Authority. 

12. Obligations of promoter regarding veracity of the advertisement or prospectus.—Where any 
person  makes  an  advance  or  a  deposit  on  the  basis  of  the  information  contained  in  the  notice, 
advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, 
and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be 
compensated by the promoter in the manner as provided under this Act: 

Provided  that  if  the  person  affected  by  such  incorrect,  false  statement  contained  in  the  notice, 
advertisement  or  prospectus,  or  the  model  apartment,  plot  or  building  as  the  case  may  be,  intends  to 
withdraw from the proposed project, he shall be returned his entire investment along with interest at such 
rate as may be prescribed and the compensation in the manner provided under this Act. 

13.  No  deposit  or  advance  to  be  taken  by  promoter  without  first  entering  into  agreement  for 
sale.—(1) A promoter shall not accept a sum more than ten per cent. of the cost of the apartment, plot, or 
building  as  the  case  may  be,  as  an  advance  payment  or  an  application  fee,  from  a  person  without  first 
entering into a written agreement for sale with such person and register the said agreement for sale, under 
any law for the time being in force. 

(2) The agreement for sale referred to in sub-section (1) shall be in such form as may be prescribed 
and shall specify the particulars of development of the project including the construction of building and 
apartments, along with specifications and internal development works and external development works, 
the dates and the manner by which payments towards the cost of the apartment, plot, or building, as the 
case may be, are to be made by the allottees and the date on which the possession of the apartment, plot or 
building is to be handed over, the rates of interest payable by the promoter to the allottee and the allottee 
to the promoter in case of default, and such other particulars, as may be prescribed. 

14.  Adherence  to  sanctioned  plans  and  project  specifications  by  the  promoter.—(1)  The 
proposed  project  shall  be developed  and  completed by  the  promoter  in  accordance  with  the  sanctioned 
plans, layout plans and specifications as approved by the competent authorities. 

(2) Notwithstanding anything contained in any law, contract or agreement, after the sanctioned plans, 
layout plans and specifications and the nature of the fixtures, fittings, amenities and common areas, of the 

15 

 
apartment, plot or building, as the case may be, as approved by the competent authority, are disclosed or 
furnished to the person who agree to take one or more of the said apartment, plot or building, as the case 
may be, the promoter shall not make— 

(i) any additions and alterations in the sanctioned plans, layout plans and specifications and the 
nature  of  fixtures,  fittings  and  amenities  described  therein  in  respect  of  the  apartment,  plot  or 
building,  as  the  case  may  be,  which  are  agreed  to  be  taken,  without  the  previous  consent  of  that 
person: 

Provided that the promoter may make such minor additions or alterations as may be required by the 
allottee,  or  such  minor  changes  or  alterations  as  may  be  necessary  due  to  architectural  and  structural 
reasons duly recommended and verified by an authorised Architect or Engineer after proper declaration 
and intimation to the allottee. 

Explanation.—For  the  purpose  of  this  clause,  “minor  additions  or  alterations”  excludes  structural 
change including an addition to the area or change in height, or the removal of part of a building, or any 
change to the structure, such as the construction or removal or cutting into of any wall or a part of a wall, 
partition,  column,  beam,  joist,  floor  including  a  mezzanine  floor  or  other  support,  or  a  change  to  or 
closing of any required means of access ingress or egress or a change to the fixtures or equipment, etc. 

(ii) any other alterations or additions in the sanctioned plans,  layout plans and specifications of 
the buildings or the common areas within the project without the previous written consent of at least 
two-thirds  of  the  allottees,  other  than  the  promoter,  who  have  agreed  to  take  apartments  in  such 
building. 

Explanation.—For the purpose of this clause, the allottee, irrespective of the number of apartments or 
plots,  as the case  may  be,  booked  by  him  or  booked  in  the  name  of  his  family,  or  in the case  of  other 
persons  such  as  companies  or  firms  or  any  association  of  individuals,  etc.,  by  whatever  name  called, 
booked  in  its  name  or  booked  in  the  name  of  its  associated  entities  or  related  enterprises,  shall  be 
considered as one allottee only. 

(3) In case any structural defect or any other defect in workmanship, quality or provision of services 
or  any  other  obligations  of  the  promoter  as  per  the  agreement  for  sale  relating  to  such  development  is 
brought to the notice of the promoter within a period of five years by the allottee from the date of handing 
over possession, it shall be the duty of the promoter to rectify such defects without further charge, within 
thirty days, and in the event of promoter's failure to rectify such defects within such time, the aggrieved 
allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act. 

15. Obligations of promoter in case of transfer of a real estate project to a third party.—(1) The 
promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to 
a  third  party  without  obtaining  prior  written  consent from  two-third  allottees,  except the  promoter, and 
without the prior written approval of the Authority: 

Provided that such transfer or assignment shall not affect the allotment or sale of the apartments, plots 

or buildings as the case may be, in the real estate project made by the erstwhile promoter. 

Explanation.—For  the  purpose  of  this  sub-section,  the  allottee,  irrespective  of  the  number  of 
apartments or plots, as the case may be, booked by him or booked in the name of his family, or in the case 
of other persons such as companies or firms or any association of individuals, by whatever name called, 
booked  in  its  name  or  booked  in  the  name  of  its  associated  entities  or  related  enterprises,  shall  be 
considered as one allottee only. 

(2)  On  the  transfer  or  assignment  being  permitted  by  the  allottees  and  the  Authority  under  
sub-section (1), the  intending  promoter  shall  be  required  to independently  comply  with  all  the  pending 
obligations under the provisions of this Act or the rules and regulations made thereunder, and the pending 
obligations as per the agreement for sale entered into by the erstwhile promoter with the allottees: 

Provided that any transfer or assignment permitted under provisions of this section shall not result in 
extension of time to the intending promoter to complete the real estate project and he shall be required to 
comply with all the pending obligations of the erstwhile promoter, and in case of default, such intending 

16 

 
promoter shall be liable to the consequences of breach or delay, as the case may be, as provided under this 
Act or the rules and regulations made thereunder.  

16. Obligations of promoter regarding insurance of real estate project.—(1) The promoter shall 
obtain all such insurances as may be notified by the appropriate Government, including but not limited to 
insurance in respect of — 

(i) title of the land and building as a part of the real estate project; and 

(ii) construction of the real estate project.  

(2) The promoter shall be liable to pay the premium and charges in respect of the insurance specified 
in  sub-section  (1)  and  shall  pay  the  same  before  transferring  the  insurance  to  the  association  of  the 
allottees. 

(3)  The  insurance  as  specified  under  sub-section  (1)  shall  stand  transferred  to  the  benefit  of  the 
allottee  or  the  association  of  allottees,  as  the  case  may  be,  at  the  time  of  promoter  entering  into  an 
agreement for sale with the allottee. 

(4) On formation of the association of the allottees, all documents relating to the insurance specified 

under sub-section (1) shall be handed over to the association of the allottees. 

17. Transfer of title.—(1) The promoter shall execute a registered conveyance deed in favour of the 
allottee along with the undivided proportionate title in the common areas to the association of the allottees 
or  the  competent  authority,  as  the  case  may  be,  and  hand  over  the  physical  possession  of  the  plot, 
apartment of building, as the case may be, to the allottees and the common areas to the association of the 
allottees  or  the  competent  authority,  as  the  case  may  be,  in  a  real  estate  project,  and  the  other  title 
documents pertaining thereto within specified period as per sanctioned plans as provided under the local 
laws: 

Provided  that,  in  the  absence  of  any  local  law,  conveyance  deed  in  favour  of  the  allottee  or  the 
association  of  the  allottees  or  the  competent  authority,  as  the  case  may  be,  under  this  section  shall  be 
carried out by the promoter within three months from date of issue of occupancy certificate. 

(2) After obtaining the occupancy certificate and handing over physical possession to the allottees in 
terms  of  sub-section  (1),  it  shall  be  the  responsibility  of  the  promoter  to  handover  the  necessary 
documents  and  plans,  including  common  areas,  to  the  association  of  the  allottees  or  the  competent 
authority, as the case may be, as per the local laws: 

Provided that, in the absence of any local law, the promoter shall handover the necessary documents 
and plans, including common areas, to the association of the allottees or the competent authority, as the 
case may be, within thirty days after obtaining the 1[completion] certificate. 

18. Return of amount and compensation.—(1) If the promoter fails to complete or is unable to give 

possession of an apartment, plot or building,— 

(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed 

by the date specified therein; or 

(b) due to discontinuance of his business as a developer on account of suspension or revocation of 

the registration under this Act or for any other reason, 

he  shall  be  liable  on  demand  to  the  allottees,  in  case  the  allottee  wishes  to  withdraw  from  the  project, 
without prejudice to any other remedy available, to return the amount received by him in respect of that 
apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf 
including compensation in the manner as provided under this Act: 

Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the 
promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be 
prescribed. 

(2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title 
of the land, on which the project is being developed or has been developed, in the manner as provided 

1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016[S.O. 3347(E), for “occupancy”  

(w.e.f. 28-10-2016). 

17 

 
                                                           
under  this  Act,  and  the  claim  for  compensation  under  this  subsection  shall  not  be  barred  by  limitation 
provided under any law for the time being in force. 

(3) If the promoter fails to discharge any other obligations imposed on him under this Act or the rules 
or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, 
he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act. 

CHAPTER IV 

RIGHTS AND DUTIES OF ALLOTTEES 

19.  Rights  and  duties  of  allottees.—(1)  The  allottee  shall  be  entitled  to  obtain  the  information 
relating  to  sanctioned  plans,  layout  plans  along  with  the  specifications,  approved  by  the  competent 
authority and such other information as provided in this Act or the rules and regulations made thereunder 
or the agreement for sale signed with the promoter. 

(2)  The  allottee  shall  be  entitled  to  know  stage-wise  time  schedule  of  completion  of  the  project, 
including  the  provisions  for  water,  sanitation,  electricity  and  other  amenities  and  services  as  agreed  to 
between the promoter and the allottee in accordance with the terms and conditions of the agreement for 
sale. 

(3) The  allottee shall be  entitled  to  claim  the  possession of  apartment,  plot or building,  as the  case 
may be, and the association of allottees shall be entitled to claim the possession of the common areas, as 
per  the  declaration  given  by  the  promoter  under  sub-clause  (C)  of  clause  (l)  of  sub-section  (2)  of  
section 4. 

(4) The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as 
may be prescribed and compensation in the manner as provided under this Act, from the promoter, if the 
promoter fails to comply  or  is  unable to  give  possession  of the  apartment,  plot or  building,  as the  case 
may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a 
developer on account of suspension or revocation of his registration under the provisions of this Act or 
the rules or regulations made thereunder. 

(5)  The  allottee  shall  be  entitled  to  have  the  necessary  documents  and  plans,  including  that  of 
common areas, after handing over the physical possession of the apartment or plot or building as the case 
may be, by the promoter. 

(6) Every allottee, who has entered into an agreement for sale to take an apartment, plot or building as 
the case may be, under section 13, shall be  responsible to make necessary payments in the manner and 
within the time as specified in the said agreement for sale and shall pay at the proper time and place, the 
share  of  the  registration  charges,  municipal  taxes,  water  and  electricity  charges,  maintenance  charges, 
ground rent, and other charges, if any. 

(7)  The  allottee  shall  be  liable  to  pay  interest,  at  such  rate  as  may  be  prescribed,  for  any  delay  in 

payment towards any amount or charges to be paid under sub-section (6). 

(8)  The  obligations  of  the  allottee  under  sub-section  (6)  and  the  liability  towards  interest  under  

sub-section (7) may be reduced when mutually agreed to between the promoter and such allottee. 

(9) Every allottee of the apartment, plot or building as the case may be, shall participate towards the 

formation of an association or society or cooperative society of the allottees, or a federation of the same. 

(10) Every allottee shall take physical possession of the apartment, plot or building as the case may 
be,  within  a  period  of  two  months  of  the  occupancy  certificate  issued  for  the  said  apartment,  plot  or 
building, as the case may be. 

(11) Every allottee shall participate towards registration of the conveyance deed of the apartment, plot 

or building, as the case may be, as provided under sub-section (1) of section 17 of this Act. 

18 

 
 
 
CHAPTER V 

THE REAL ESTATE REGULATORY AUTHORITY 

20. Establishment and incorporation of Real Estate Regulatory Authority.—(1) The appropriate 
Government  shall,  within  a  period  of  one  year  from  the  date  of  coming  into  force  of  this  Act,  by 
notification, establish an Authority to be known as the Real Estate Regulatory Authority to exercise the 
powers conferred on it and to perform the functions assigned to it under this Act: 

Provided that the appropriate Government of two or more States or Union territories may, if it deems 

fit, establish one single Authority: 

Provided  further  that  the  appropriate  Government  may,  if  it  deems  fit,  establish  more  than  one 

Authority in a State or Union territory, as the case may be: 

Provided  also  that  until  the  establishment  of  a  Regulatory  Authority  under  this  section,  the 
appropriate Government shall, by order, designate any Regulatory Authority or any officer preferably the 
Secretary of the department dealing with Housing, as the Regulatory Authority for the purposes under this 
Act: 

Provided also that after the establishment of the Regulatory Authority, all applications, complaints or 
cases  pending  with  the  Regulatory  Authority  designated,  shall  stand  transferred  to  the  Regulatory 
Authority  so  established  and  shall  be  heard  from  the  stage  such  applications,  complaints  or  cases  are 
transferred. 

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a 
common  seal,  with  the  power,  subject  to  the  provisions  of  this  Act,  to  acquire,  hold  and  dispose  of 
property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. 

21. Composition of Authority.—The Authority shall consist of a Chairperson and not less than two 

whole time Members to be appointed by the appropriate Government. 

22.  Qualifications  of  Chairperson  and  Members  of  Authority.—The  Chairperson  and  other 
Members of the Authority shall be appointed by the appropriate Government on the recommendations of 
a Selection Committee consisting of the Chief Justice of the High Court or his nominee, the Secretary of 
the Department dealing with Housing and the Law Secretary, in such manner as may be prescribed, from 
amongst  persons  having  adequate  knowledge  of  and  professional  experience of  at-least twenty  years in 
case of the Chairperson and fifteen years in the case of the Members in urban development, housing, real 
estate  development,  infrastructure,  economics,  technical  experts  from  relevant  fields,  planning,  law, 
commerce, accountancy, industry, management, social service, public affairs or administration: 

Provided  that  a  person  who  is,  or  has  been,  in  the  service  of  the  State  Government  shall  not  be 
appointed as a Chairperson unless such person has held the post of Additional Secretary to the Central 
Government or any equivalent post in the Central Government or State Government: 

Provided further that a person who is, or has been, in the service of the State Government shall not be 
appointed as a member unless such person has held the post of Secretary to the State Government or any 
equivalent post in the State Government or Central Government. 

23. Term of office of Chairperson and Members.—(1) The Chairperson and Members shall hold 
office for a term not exceeding five  years from the date on which they enter upon their office, or until 
they attain the age of sixty-five years, whichever is earlier and shall not be eligible for re-appointment. 

(2)  Before  appointing  any  person  as  a  Chairperson  or  Member,  the  appropriate  Government  shall 
satisfy  itself  that  the  person  does  not  have  any  such  financial  or  other  interest  as  is  likely  to  affect 
prejudicially his functions as such Member. 

24. Salary and allowances payable to Chairperson and Members.—(1) The salary and allowances 
payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be 
such as may be prescribed and shall not be varied to their disadvantage during their tenure. 

(2) Notwithstanding anything contained in sub-sections (1) and (2) of section 23, the Chairperson or a 

Member, as the case may be, may,— 

(a) relinquish his office by giving in writing, to the appropriate Government, notice of not less 

than three months; or 

19 

 
 
(b) be removed from his office in accordance with the provisions of section 26 of this Act. 

(3)  Any  vacancy  caused  to  the  office  of  the  Chairperson  or  any  other  Member  shall  be  filled-up 

within a period of three months from the date on which such vacancy occurs. 

25.  Administrative  powers  of  Chairperson.—The  Chairperson  shall  have  powers  of  general 
superintendence  and  directions  in  the  conduct  of  the  affairs  of  Authority  and  he  shall,  in  addition  to 
presiding  over  the  meetings  of  the  Authority,  exercise  and  discharge  such  administrative  powers  and 
functions of the Authority as may be prescribed. 

26.  Removal  of  Chairperson  and  Members  from  office  in  certain  circumstances.—(1)  The 
appropriate  Government  may,  in  accordance  with  the  procedure  notified,  remove  from  office  the 
Chairperson or other Members, if the Chairperson or such other Member, as the case may be,— 

(a) has been adjudged as an insolvent; or 

(b) has been convicted of an offence, involving moral turpitude; or 

(c) has become physically or mentally incapable of acting as a Member; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or 

(e)  has  so  abused  his  position  as  to  render  his  continuance  in  office  prejudicial  to  the  public 

interest. 

(2) The Chairperson or Member shall not be removed from his office on the ground specified under 
clause (d) or clause (e) of sub-section (1) except by an order made by the appropriate Government after an 
inquiry made by a Judge of the High Court in which such Chairperson or Member has been informed of 
the charges against him and given a reasonable opportunity of being heard in respect of those charges. 

27. Restrictions on Chairperson or Members on employment after cessation of office.—(1) The 

Chairperson or a Member, ceasing to hold office as such, shall not— 

(a)  accept  any  employment  in,  or  connected  with,  the  management  or  administration  of,  any 
person  or  organisation  which  has  been  associated  with  any  work  under  this  Act,  from  the  date  on 
which he ceases to hold office: 

Provided  that  nothing  contained  in  this  clause  shall  apply  to  any  employment  under  the 
appropriate  Government  or  a  local  authority  or  in  any  statutory  authority  or  any  corporation 
established by or under any Central, State or provincial Act or a Government Company, as defined 
under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), which is not a promoter as 
per the provisions of this Act; 

(b) act, for or on behalf of any person or organisation in connection with any specific proceeding 
or transaction or negotiation or a case to which the Authority is a party and with respect to which the 
Chairperson  or  such  Member  had,  before  cessation  of  office,  acted  for  or  provided  advice  to  the 
Authority; 

(c)  give  advice  to  any  person  using  information  which  was  obtained  in  his  capacity  as  the 
Chairperson  or  a  Member  and  being  unavailable  to  or  not  being  able  to  be  made  available  to  the 
public; 

(d)  enter  into a  contract of  service  with,  or  accept  an  appointment  to a  boardof directors  of,  or 
accept  an  offer  of  employment  with,  an  entity  with  which  he  had  direct  and  significant  official 
dealings during his term of office as such. 

(2) The Chairperson and Members shall not communicate or reveal to any person any matter which 

has been brought under his consideration or known to him while acting as such. 

28.  Officers  and  other  employees  of  Authority.—(1)  The  appropriate  Government  may,  in 
consultation  with  the  Authority  appoint  such  officers  and  employees  as  it  considers  necessary  for  the 
efficient discharge of their functions under this Act who would discharge their functions under the general 
superintendence of the Chairperson. 

20 

 
 
(2)  The  salary  and  allowances  payable  to,  and  the  other  terms  and  conditions  of  service  of,  the 
officers and of the employees of the Authority appointed under sub-section (1) shall be such as may be 
prescribed. 

29. Meetings of Authority.—(1) The Authority shall meet at such places and times, and shall follow 
such rules of procedure in regard to the transaction of business at its meetings, (including quorum at such 
meetings), as may be specified by the regulations made by the Authority. 

(2)  If  the  Chairperson  for  any  reason,  is  unable  to  attend  a  meeting  of  the  Authority,  any  other 
Member chosen by the Members present amongst themselves at the meeting, shall preside at the meeting. 

(3) All questions which come up before any meeting of the Authority shall be decided by a majority 
of votes by the Members present and voting, and in the event of an equality of votes, the Chairperson or 
in his absence, the person presiding shall have a second or casting vote. 

(4) The questions which come up before the Authority shall be dealt with as expeditiously as possible 
and the Authority shall dispose of the same within a period of sixty days from the date of receipt of the 
application: 

Provided  that  where  any  such  application  could  not  be  disposed  of  within  the  said  period  of  sixty 
days,  the  Authority  shall  record  its  reasons  in  writing  for  not  disposing  of  the  application  within  that 
period. 

30.  Vacancies,  etc.,  not  to  invalidate  proceeding  of  Authority.—No  act  or  proceeding  of  the 

Authority shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Authority; or 

(b) any defect in the appointment of a person acting as a Member of the Authority; or 

(c) any irregularity in the procedure of the Authority not affecting the merits of the case. 

31.  Filing  of  complaints  with  the  Authority  or  the  adjudicating  officer.—(1)  Any  aggrieved 
person may file a complaint with the Authority or the adjudicating officer, as  the case may be, for any 
violation  or  contravention  of  the  provisions  of  this  Act  or  the  rules  and  regulations  made  thereunder, 
against any promoter, allottee or real estate agent, as the case may be. 

Explanation.—For the purpose of this sub-section “person” shall include the association of allottees 

or any voluntary consumer association registered under any law for the time being in force. 

(2)  The  form,  manner  and  fees  for  filing  complaint  under  sub-section  (1)  shall  be  such  as  may  be 

1[prescribed]. 

32. Functions of Authority for promotion of real estate sector.—The Authority shall in order to 
facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector 
make recommendations to the appropriate Government or the competent authority, as the case may be, 
on,— 

(a) protection of interest of the allottees, promoter and real estate agent; 

(b) creation of a single window system for ensuring time bound project approvals and clearances 

for timely completion of the project; 

(c) creation of a transparent and robust grievance redressal mechanism against acts of  omission 

and commission of competent authorities and their officials; 

(d)  measures  to  encourage  investment  in  the  real  estate  sector  including  measures  to  increase 

financial assistance to affordable housing segment; 

(e)  measures  to  encourage  construction  of  environmentally  sustainable  and  affordable  housing, 
promoting  standardisation  and  use  of  appropriate  construction  materials,  fixtures,  fittings  and 
construction techniques; 

1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347 (E)], for “specified by 

regulations” (w.e.f. 28-10-2016). 

21 

 
 
                                                           
(f)  measures  to  encourage  grading  of  projects  on  various  parameters  of  development  including 

grading of promoters; 

(g)  measures  to  facilitate  amicable  conciliation  of  disputes  between  the  promoters  and  the 

allottees through dispute settlement forums set up by the consumer or promoter associations; 

(h)  measures  to  facilitate  digitization  of  land  records  and  system  towards  conclusive  property 

titles with title guarantee; 

(i) to render advice to the appropriate Government in matters relating to the development of real 

estate sector; 

(j)  any  other  issue  that  the  Authority  may  think  necessary  for  the  promotion  of  the  real  estate 

sector. 

33. Advocacy and awareness measures.—(1) The appropriate Government may, while formulating 
a policy on real estate sector (including review of laws related to real estate sector) or any other matter, 
make a reference to the Authority for its opinion on possible effect of such policy or law on real estate 
sector and on the receipt of such a reference, the Authority shall within a period of sixty days of making 
such reference, give its opinion to the appropriate Government, which may thereafter take further action 
as it deems fit. 

(2)  The  opinion  given  by  the  Authority  under  sub-section  (1)  shall  not  be  binding  upon  the 

appropriate Government in formulating such policy or laws. 

(3) The Authority shall take suitable measures for the promotion of advocacy, creating awareness and 

imparting training about laws relating to real estate sector and policies. 

34. Functions of Authority.—The functions of the Authority shall include— 

(a) to register and regulate real estate projects and real estate agents registered under this Act; 

(b) to publish and maintain a website of records, for public viewing, of all real estate projects for 
which  registration  has  been  given,  with  such  details  as  may  be  prescribed,  including  information 
provided in the application for which registration has been granted; 

(c)  to  maintain  a  database,  on  its  website,  for  public  viewing,  and  enter  the  names  and 
photographs of promoters as defaulters including the project details, registration for which has been 
revoked or have been penalised under this Act, with reasons therefor, for access to the general public; 

(d)  to  maintain  a  database,  on  its  website,  for  public  viewing,  and  enter  the  names  and 
photographs of real estate agents who have applied and registered under this Act, with such details as 
may be prescribed, including those whose registration has been rejected or revoked; 

(e) to fix through regulations for each areas under its jurisdiction the standard fees to be levied on 

the allottees or the promoter or the real estate agent, as the case may be; 

(f)  to  ensure  compliance  of  the  obligations  cast  upon  the  promoters,  the  allottees  and  the  real 

estate agents under this Act and the rules and regulations made thereunder; 

(g) to ensure compliance of its regulations or orders or directions made in exercise of its powers 

under this Act; 

(h)  to  perform  such  other  functions  as  may  be  entrusted  to  the  Authority  by  the  appropriate 

Government as may be necessary to carry out the provisions of this Act. 

35. Powers of Authority to call for information, conduct investigations.—(1) Where the Authority 
considers it expedient to do so, on a complaint or suomotu, relating to this Act or the rules or regulations 
made  thereunder, it  may,  by  order in  writing  and recording  reasons therefor  call  upon  any  promoter  or 
allottee  or  real  estate  agent,  as  the  case  may  be,  at  any  time  to  furnish  in  writing  such  information  or 
explanation relating to its affairs as the Authority may require and appoint one or more persons to make 
an inquiry in relation to the affairs of any promoter or allottee or the real estate agent, as the case may be. 

22 

 
 
(2) Notwithstanding anything contained in any other law for the time being in force, while exercising 
the powers under sub-section (1), the Authority shall have the same powers as are vested in a civil court 
under  the  Code  of  Civil  Procedure,  1908  (5  of  1908)  while  trying  a  suit,  in  respect  of  the  following 
matters, namely:— 

(i) the discovery and production of books of account and other documents, at such place and at 

such time as may be specified by the Authority; 

(ii) summoning and enforcing the attendance of persons and examining them on oath; 

(iii) issuing commissions for the examination of witnesses or documents; 

(iv) any other matter which may be prescribed. 

36. Power to issue interim orders.—Where during an inquiry, the Authority is satisfied that an act in 
contravention  of  this  Act,  or  the  rules  and  regulations  made  thereunder,  has  been  committed  and 
continues to be committed or that such act is about to be committed, the Authority may, by order, restrain 
any promoter, allottee or real estate agent from carrying on such act until the conclusion of such inquiry 
or until further orders, without giving notice to such party, where the Authority deems it necessary. 

37. Powers of Authority to issue directions.—The Authority may, for the purpose of discharging its 
functions under the provisions of this Act or rules or regulations made thereunder,  issue such directions 
from  time  to  time,  to  the  promoters  or  allottees  or  real  estate  agents,  as  the  case  may  be,  as  it  may 
consider necessary and such directions shall be binding on all concerned. 

38.  Powers  of  Authority.—(1)  The  Authority  shall  have  powers  to  impose  penalty  or  interest,  in 
regard to any contravention of obligations cast upon the promoters, the allottees and the real estate agents, 
under this Act or the rules and the regulations made thereunder. 

(2)  The  Authority  shall  be  guided  by  the  principles  of  natural  justice  and,  subject  to  the  other 
provisions of this Act and the rules made thereunder, the Authority shall have powers to regulate its own 
procedure. 

(3) Where an issue is raised relating to agreement, action, omission, practice or procedure that— 

(a) has an appreciable prevention, restriction or distortion of competition in connection with the 

development of a real estate project; or 

(b)  has  effect  of  market  power  of  monopoly  situation  being  abused  for  affecting  interest  of 

allottees adversely,  

then  the  Authority,  may,  suomotu,  make  reference  in  respect  of  such  issue  to  the  Competition 
Commission of India. 

39. Rectification of orders.—The Authority may, at any time within a period of two years from the 
date of the order made under this Act, with a view to rectifying any  mistake apparent from the record, 
amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by 
the parties: 

Provided that no such amendment shall be made in respect of any order against which an appeal has 

been preferred under this Act: 

Provided  further  that  the  Authority  shall  not,  while  rectifying  any  mistake  apparent  from  record, 

amend substantive part of its order passed under the provisions of this Act. 

40.  Recovery  of  interest  or  penalty  or  compensation  and  enforcement  of  order,  etc.—(1)  If  a 
promoter or an allottee or a real estate agent, as the case may be, fails to pay any interest or penalty or 
compensation imposed on him, by the adjudicating officer or the Regulatory Authority or the Appellate 
Authority,  as  the  case  may  be,  under  this  Act  or  the  rules  and  regulations  made  thereunder,  it  shall  be 
recoverable from such promoter or allottee or real estate agent, in such manner as may be prescribed as an 
arrears of land revenue. 

23 

 
 
(2) If any adjudicating officer or the Regulatory Authority or the Appellate Tribunal, as the case may 
be,  issues  any  order  or  directs  any  person  to  do  any  act,  or  refrain  from  doing  any  act,  which  it  is 
empowered to do under this Act or the rules or regulations made thereunder, then in case of failure by any 
person  to  comply  with  such  order  or  direction,  the  same  shall  be  enforced,  in  such  manner  as  may  be 
prescribed. 

CHAPTER VI 

CENTRAL ADVISORY COUNCIL 

41.  Establishment  of  Central  Advisory  Council.—(1)  The  Central  Government  may,  by 
notification, establish with effect from such date as it may specify in such notification, a Council to be 
known as the Central Advisory Council. 

(2)  The  Minister  to  the  Government  of  India  in  charge  of  the  Ministry  of  the  Central  Government 

dealing with Housing shall be the ex officio Chairperson of the Central Advisory Council. 

(3) The Central Advisory Council shall consist of representatives of the Ministry of Finance, Ministry 
of Industry and Commerce, Ministry of Urban Development, Ministry of Consumer Affairs, Ministry of 
Corporate Affairs, Ministry of Law and Justice, Niti Aayog, National Housing Bank, Housing and Urban 
Development  Corporation,  five  representatives  of  State  Governments  to  be  selected  by  rotation,  five 
representatives of the Real Estate Regulatory Authorities to be selected by rotation, and any other Central 
Government department as notified. 

(4) The Central Advisory Council shall also consist of not more than ten members to represent the 
interests of real estate industry, consumers, real estate agents, construction labourers, non-governmental 
organisations and academic and research bodies in the real estate sector. 

42.  Functions  of  Central  Advisory  Council.—(1)  The  functions  of  the  Central  Advisory  Council 

shall be to advise and recommend the Central Government,— 

(a) on all matters concerning the implementation of this Act; 

(b) on major questions of policy; 

(c) towards protection of consumer interest; 

(d) to foster the growth and development of the real estate sector; 

(e) on any other matter as may be assigned to it by the Central Government. 

(2)  The  Central  Government  may  specify  the  rules  to  give  effect  to  the  recommendations  of  the 

Central Advisory Council on matters as provided under sub-section (1). 

CHAPTER VII 

THE REAL ESTATE APPELLATE TRIBUNAL 

43.  Establishment  of  Real  Estate  Appellate  Tribunal.—(1)  The  appropriate  Government  shall, 
within a period of one year from the date of coming into force of this Act, by notification, establish an 
Appellate  Tribunal  to  be  known  as  the  —(name  of  the  State/Union  territory)  Real  Estate  Appellate 
Tribunal. 

(2)  The  appropriate  Government  may,  if  it  deems  necessary,  establish  one  or  more  benches  of  the 

Appellate Tribunal, for various jurisdictions, in the State or Union territory, as the case may be. 

(3)  Every  bench  of  the  Appellate  Tribunal  shall  consist  of  at  least  one  Judicial  Member  and  one 

Administrative or Technical Member. 

(4)  The  appropriate  Government  of  two  or  more  States  or  Union  territories  may,  if  it  deems  fit, 

establish one single Appellate Tribunal: 

Provided  that,  until  the  establishment  of  an  Appellate  Tribunal  under  this  section,  the  appropriate 
Government  shall  designate,  by  order,  any  Appellate  Tribunal  functioning  under  any  law  for  the  time 
being in force, to be the Appellate Tribunal to hear appeals under the Act: 

24 

 
 
Provided further that after the Appellate Tribunal under this section is established, all matters pending 
with the Appellate Tribunal designated to hear appeals, shall stand transferred to the Appellate Tribunal 
so established and shall be heard from the stage such appeal is transferred. 

(5)  Any  person  aggrieved  by  any  direction  or  decision  or  order  made  by  the  Authority  or  by  an 
adjudicating  officer  under  this  Act  may  prefer  an  appeal  before  the  Appellate  Tribunal  having 
jurisdictionover the matter: 

Provided that where a promoter files an appeal with the Appellate Tribunal, it shall not be entertained, 
without  the  promoter  first  having  deposited  with  the  Appellate  Tribunal  atleast  thirty  per  cent.  of  the 
penalty, or such higher percentage as may be determined by the Appellate Tribunal, or the total amount to 
be paid to the allottee including interest and compensation imposed on him, if any, or with both, as the 
case may be, before the said appeal is heard. 

Explanation.—For the purpose of this sub-section “person” shall include the association of allottees 

or any voluntary consumer association registered under any law for the time being in force. 

44.  Application  for  settlement  of  disputes  and  appeals  to  Appellate  Tribunal.—(1)  The 
appropriate Government or the competent authority or any person aggrieved by any direction or order or 
decision of the Authority or the adjudicating officer may prefer an appeal to the Appellate Tribunal. 

(2) Every appeal made under sub-section (1) shall be preferred within a period of sixty days from the 
date  on  which  a  copy  of  the  direction  or  order  or  decision  made  by  the  Authority  or  the  adjudicating 
officer is received by the appropriate Government or the competent authority or the aggrieved person and 
it shall be in such form and accompanied by such fee, as may be prescribed: 

Provided that the Appellate Tribunal may entertain any appeal after the expiry of sixty days if it is 

satisfied that there was sufficient cause for not filling it within that period. 

(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may after giving the parties 

an opportunity of being heard, pass such orders, including interim orders, as it thinks fit. 

(4)  The  Appellate  Tribunal  shall  send  a  copy  of  every  order  made  by  it  to  the  parties  and  to  the 

Authority or the adjudicating officer, as the case may be. 

(5) The appeal preferred under sub-section (1), shall be dealt with by it as expeditiously as possible 
and endeavour shall be made by it to dispose of the appeal within a period of sixty days from the date of 
receipt of appeal: 

Provided that where any such appeal could not be disposed of within the said period of sixty days, the 

Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within that period. 

(6) The Appellate Tribunal may, for the purpose of examining the legality or propriety or correctness 
of any order or decision of the Authority or the adjudicating officer, on its own motion or otherwise, call 
for the records relevant to deposing of such appeal and make such orders as it thinks fit. 

45. Composition of Appellate Tribunal.—The Appellate Tribunal shall consist of a Chairperson and 
not  less  than  two  whole  time  Members  of  which  one  shall  be  a  Judicial  member  and  other  shall  be  a 
Technical or Administrative Member, to be appointed by the appropriate Government. 

Explanation.—For the purposes of this Chapter,— 

(i)  “Judicial  Member”  means  a  Member  of  the  Appellate  Tribunal  appointed  as  such  under  

clause (b) of sub-section (1) of section 46; 

(ii) “Technical or Administrative Member” means a Member of the Appellate Tribunal appointed 

as such under clause (c) of sub-section (1) of section 46. 

46.  Qualifications  for  appointment  of  Chairperson  and  Members.—(1)  A  person  shall  not  be 

qualified for appointment as the Chairperson or a Member of the Appellate Tribunal unless he,— 

(a) in the case of Chairperson, is or has been a Judge of a High Court; and 

25 

 
 
(b) in the case of a Judicial Member he has held a judicial office in the territory of India for at 
least  fifteen  years  or  has  been  a  member  of  the  Indian  Legal  Service  and  has  held  the  post  of 
Additional Secretary of that service or any equivalent post, or has been an advocate for at least twenty 
years with experience in dealing with real estate matters; and 

(c) in the case of a Technical or Administrative Member, he is a person who is well-versed in the 
field  of  urban  development,  housing,  real  estate  development,  infrastructure,  economics,  planning, 
law,  commerce,  accountancy,  industry,  management,  public  affairs  or  administration  and  possesses 
experience of at least twenty years in the field or who has held the post in the Central Government or 
a State Government equivalent to the post of Additional Secretary to the Government of India or an 
equivalent post in the Central Government or an equivalent post in the State Government. 

(2) The Chairperson of the Appellate Tribunal shall be appointed by the appropriate Government in 

consultation with the Chief Justice of High Court or his nominee. 

(3) The Judicial Members and Technical or Administrative Members of the Appellate Tribunal shall 
be  appointed  by  the  appropriate  Government  on  the  recommendations  of  a  Selection  Committee 
consisting  of  the  Chief  Justice  of  the  High  Court  or  his  nominee,  the  Secretary  of  the  Department 
handling Housing and the Law Secretary and in such manner as may be prescribed. 

47. Term of office of Chairperson and Members.—(1) The Chairperson of the Appellate Tribunal 
or a Member of the Appellate Tribunal shall hold office, as such for a term not exceeding five years from 
the date on which he enters upon his office, but shall not be eligible for re-appointment: 

Provided that in case a person, who is or has been a Judge of a High Court, has been appointed as 

Chairperson of the Tribunal, he shall not hold office after he has attained the age of sixty-seven years: 

Provided further that no Judicial Member or Technical or Administrative Member  shall hold office 

after he has attained the age of sixty-five years. 

(2)  Before  appointing  any  person  as  Chairperson  or  Member,  the  appropriate  Government  shall 
satisfy  itself  that  the  person  does  not  have  any  such  financial  or  other  interest,  as  is  likely  to  affect 
prejudicially his functions as such member. 

48. Salary and allowances payable to Chairperson and Members.—(1) The salary and allowances 
payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be 
such as may be prescribed and shall not be varied to their disadvantage during their tenure. 

(2) Notwithstanding anything contained in sub-sections (1) and (2) of section 47, the Chairperson or a 

Member, as the case may be, may:— 

(a) relinquish his office by giving in writing to the appropriate Government a notice of not less 

than three months; 

(b) be removed from his office in accordance with the provisions of section 49. 

(3) A vacancy caused to the office of the Chairperson or any other Member, as the case may be, shall 

be filled-up within a period of three months from the date on which such vacancy occurs. 

49.  Removal  of  Chairperson  and  Member  from  office  in  certain  circumstances.—(1)  The 
appropriate  Government  may,  in  consultation  with  the  Chief  Justice  of  the  High  Court,  remove  from 
office  of  the  Chairperson  or  any  Judicial  Member  or  Technical  or  Administrative  Member  of  the 
Appellate Tribunal, who— 

(a) has been adjudged as an insolvent; or 

(b)  has  been  convicted  of  an  offence  which,  in  the  opinion  of  the  appropriate  Government 

involves moral turpitude; or 

(c) has become physically or mentally incapable; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or 

26 

 
 
(e)  has  so  abused  his  position  as  to  render  his  continuance  in  office  prejudicial  to  the  public 

interest. 

(2)  The  Chairperson  or  Judicial  Member  or  Technical  or  Administrative  Member  shall  not  be 
removed from his office except by an order made by the appropriate Government after an inquiry made 
by  the  Judge  of  the  High  Court  in  which  such  Chairperson  or  Judicial  Member  or  Technical  or 
Administrative Member has been informed of the charges against him and given a reasonable opportunity 
of being heard in respect of those charges. 

(3) The appropriate Government may suspend from the office of the Chairperson or Judicial Member 
or Technical or Administrative Member in respect of whom a reference of conducting an inquiry has been 
made to the Judge of the High Court under sub-section (2), until the appropriate Government passes an 
order on receipt of the report of inquiry made by the Judge of the High Court on such reference. 

(4)  The  appropriate  Government  may,  by  rules,  regulate  the  procedure  for  inquiry  referred  to  in  

sub-section (2). 

50.  Restrictions  on  Chairperson  or  Judicial Member  or  Technical  or  Administrative Member 
on  employment  after  cessation  of  office.—(1)  The  Chairperson  or  Judicial  Member  or  Technical  or 
Administrative Member, ceasing to hold office as such shall not:— 

(a)  accept  any  employment  in,  or  connected  with,  the  management  or  administration  of,  any 
person  or  organisation  which  has  been  associated  with  any  work  under  this  Act,  from  the  date  on 
which he ceases to hold office: 

Provided  that  nothing  contained  in  this  clause  shall  apply  to  any  employment  under  the 
appropriate  Government  or  a  local  authority  or  in  any  statutory  authority  or  any  corporation 
established  by  or  under any  Central,  State  or  Provincial  Act  or  a  Government  Company  as  defined 
under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), which is not a promoter as 
per the provisions of this Act; 

(b) act, for or on behalf of any person or organisation in connection with any specific proceeding 
or transaction or negotiation or a case to which the Authority is a party and with respect to which the 
Chairperson  or  Judicial  Member  or  Technical  or  Administrative  Member  had,  before  cessation  of 
office, acted for or provided advice to, the Authority; 

(c)  give  advice  to  any  person  using  information  which  was  obtained  in  his  capacity  as  the 
Chairperson or Judicial Member or Technical or Administrative Member and being unavailable to or 
not being able to be made available to the public; 

(d) enter into a contract of service with, or accept an appointment to a board of directors of, or 
accept  an  offer  of  employment  with,  an  entity  with  which  he  had  direct  and  significant  official 
dealings during his term of office as such. 

(2)  The  Chairperson  or  Judicial  Member  or  Technical  or  Administrative  Member  shall  not 
communicate  or  reveal  to  any  person  any  matter  which  has  been  brought  under  his  consideration  or 
known to him while acting as such. 

51. Officers and other employees of Appellate Tribunal.—(1) The appropriate Government shall 

provide the Appellate Tribunal with such officers and employees as it may deem fit. 

(2)  The  officers  and  employees  of  the  Appellate  Tribunal  shall  discharge  their  functions  under  the 

general superintendence of its Chairperson. 

(3)  The  salary  and  allowances  payable  to,  and  the  other  terms  and  conditions  of  service  of,  the 

officers and employees of the Appellate Tribunal shall be such as may be prescribed. 

52. Vacancies.—If, for reason other than temporary absence, any vacancy occurs in the office of the 
Chairperson  or a  Member of  the  Appellate Tribunal, the  appropriate  Government  shall appoint another 
person  in  accordance  with  the  provisions  of  this  Act  to  fill  the  vacancy  and  the  proceedings  may  be 
continued before the Appellate Tribunal from the stage at which the vacancy is filled. 

27 

 
53. Powers of Tribunal.—(1)The Appellate Tribunal shall not be bound by the procedure laid down 

by the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice. 

(2) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate its own 

procedure. 

(3) The Appellate Tribunal shall also not be bound by the rules of evidence contained in the Indian 

Evidence Act, 1872 (1 of 1872). 

(4) The Appellate Tribunal shall have, for the purpose of discharging its functions under this Act, the 
same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect 
of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) receiving evidence on affidavits; 

(d) issuing commissions for the examinations of witnesses or documents; 

(e) reviewing its decisions; 

(f) dismissing an application for default or directing it ex parte; and 

(g) any other matter which may be prescribed. 

(5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within 
the  meaning  of  sections  193,  219  and  228  for  the  purposes  of  section  196  of  the  Indian  Penal  Code 
(45 of 1860), and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 
and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

54.  Administrative  powers  of  Chairperson  of  Appellate  Tribunal.—The  Chairperson  shall  have 
powers of general superintendence and direction in the conduct of the affairs of Appellate Tribunal and he 
shall, in addition to presiding over the meetings of the Appellate Tribunal,  exercise and discharge such 
administrative powers and functions of the Appellate Tribunal as may be prescribed. 

55. Vacancies, etc., not to invalidate proceeding of Appellate Tribunal.—No act or proceeding of 

the Appellate Tribunal shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Appellate Tribunal; or 

(b) any defect in the appointment of a person acting as a Member of the Appellate Tribunal; or 

(c) any irregularity in the procedure of the Appellate Tribunal not affecting the merits of the case. 

56.  Right  to  legal  representation.—The  applicant  or  appellant  may  either  appear  in  person  or 
authorise  one  or  more  chartered  accountants  or  company  secretaries  or  cost  accountants  or  legal 
practitioners or any of its officers to present his or its case before the Appellate Tribunal or the Regulatory 
Authority or the adjudicating officer, as the case may be. 

Explanation.—For the purposes of this section,— 

(a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section 
(1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) or any other law for the time 
being in force and who has obtained a certificate of practice under sub-section (1) of section 6 of that 
Act; 

(b) “company secretary” means a company secretary as defined in clause (c) of sub-section (1) of 
section 2 of the Company Secretaries Act, 1980 (56 of 1980) or any other law for the time being in 
force and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; 

(c)  “cost  accountant”  means  a  cost  accountant  as  defined  in  clause  (b)  of  sub-section  (1)  of 

section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) or any other law for the time  

28 

 
 
being in force and who has obtained a certificate of practice under sub-section (1) of section 6 of that 
Act; 

(d) “legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a 

pleader in practice. 

57. Orders passed by Appellate Tribunal to be executable as a decree.—(1) Every order made by 
the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil 
court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court. 

(2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any 
order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if 
it were a decree made by the court. 

58.  Appeal  to  High  Court.—(1)  Any  person  aggrieved  by  any  decision  or  order  of  the  Appellate 
Tribunal,  may,  file  an  appeal  to  the  High  Court,  within  a  period  of  sixty  days  from  the  date  of 
communication  of  the  decision  or  order  of  the  Appellate  Tribunal,  to  him,  on  any  one  or  more  of  the 
grounds specified in section 100 of the Code of Civil Procedure, 1908 (5 of 1908): 

Provided that the High Court may entertain the appeal after the expiry of the said period of sixty days, 

if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. 

Explanation.—The  expression  “High  Court”  means  the  High  Court  of  a  State  or  Union  territory 

where the real estate project is situated. 

(2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consent 

of the parties. 

CHAPTER VIII 

OFFENCES, PENALTIES AND ADJUDICATION 

59.  Punishment  for  nonregistration  under  section  3.—(1)  If  any  promoter  contravenes  the 
provisions  of  section  3,  he  shall  be  liable  to  a  penalty  which  may  extend  up  to  ten  per  cent.  of  the 
estimated cost of the real estate project as determined by the Authority. 

(2) If any promoter does not comply with the orders, decisions or directions issued under sub-section 
(1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term 
which may extend up to three years or with fine which may extend up to a further ten per cent. of the 
estimated cost of the real estate project, or with both. 

60.  Penalty  for  contravention  of  section  4.—If  any  promoter  provides  false  information  or 
contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five per 
cent. of the estimated cost of the real estate project, as determined by the Authority. 

61. Penalty for contravention of other provisions of this Act.—If any promoter contravenes any 
other  provisions  of  this  Act,  other  than  that  provided  under  section  3  or  section  4,  or  the  rules  or 
regulations made thereunder, he shall be liable to a penalty which may extend up to five per cent. of the 
estimated cost of the real estate project as determined by the Authority. 

62.  Penalty  for  nonregistration  and  contravention  under  sections  9  and  10.—If  any  real  estate 
agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a 
penalty  of  ten  thousand  rupees  for  every  day  during  which  such  default  continues,  which  may 
cumulatively extend up to five per cent. of the cost of plot, apartment or building, as the case may be, of 
the real estate project, for which the sale or purchase has been facilitated as determined by the Authority. 

63. Penalty for failure to comply with orders of Authority by promoter.—If any promoter, who 
fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a 
penalty for every day during which such default continues, which may cumulatively extend up to five per 
cent., of the estimated cost of the real estate project as determined by the Authority. 

64.  Penalty  for  failure  to  comply  with  orders  of  Appellate  Tribunal  by  promoter.—If  any 
promoter,  who  fails  to  comply  with,  or  contravenes  any  of  the  orders,  decisions  or  directions  of  the 

29 

 
Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to three 
years or with fine for every day during which such default continues, which may cumulatively extend up 
to ten per cent. of the estimated cost of the real estate project, or with both. 

65. Penalty for failure to comply with orders of Authority by real estate agent.—If any real estate 
agent, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall 
be liable to a penalty for every day during which such default continues, which may cumulatively extend 
up to five per cent., of the estimated cost of plot, apartment or building, as the case may be, of the real 
estate project, for which the sale or purchase has been facilitated and as determined by the Authority. 

66. Penalty for failure to comply with orders of Appellate Tribunal by real estate agent.—If any 
real estate agent, who fails to comply with, or contravenes any of the orders, decisions or directions of the 
Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to one year 
or with fine for every day during which such default continues, which may cumulatively extend up to ten 
per cent. of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, 
for which the sale or purchase has been facilitated, or with both. 

67. Penalty for failure to comply with orders of Authority by allottee.—If any allottee, who fails 
to  comply  with,  or  contravenes  any  of  the  orders,  decisions  or  directions  of  the  Authority  he  shall  be 
liable to a penalty for the period during which such default continues, which may cumulatively extend up 
to  five  per  cent.  of  the  plot,  apartment  or  building  cost,  as  the  case  may  be,  as  determined  by  the 
Authority. 

68. Penalty for failure to comply with orders of Appellate Tribunal by allottee.—If any allottee, 
who fails to comply with, or contravenes any of the orders or directions of the Appellate Tribunal, as the 
case may be, he shall be punishable with imprisonment for a term which may extend up to one year or 
with fine for every day during which such default continues, which may cumulatively extend up to ten per 
cent. of the plot, apartment or building cost, as the case may be, or with both. 

69.  Offences  by  companies.—(1)  Where  an  Offence  under  this  Act  has  been  committed  by  a 
company, every person who, at the time, the offence was committed was in charge of, or was responsible 
to the company for the conduct of, the business of the company, as well as the company, shall be deemed 
to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section,  shall  render  any  such  person  liable  to  any 
punishment under this Act if he proves that the offence was committed without his knowledge or that he 
had exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company,  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purpose of this section,— 

(a) “company” means any body corporate and includes a firm, or other association of individuals; 

and 

(b) “director” in relation to a firm, means a partner in the firm. 

70.  Compounding  of  offences.—Notwithstanding  anything  contained  in  the  Code  of  Criminal 
Procedure, 1973 (2 of 1974), if any person is punished with imprisonment under this Act, the punishment 
may, either before or after the institution of the prosecution, be compounded by the court on such terms 
and conditions and on payment of such sums as may be prescribed: 

Provided  that  the  sum  prescribed  shall  not,  in  any  case,  exceed  the  maximum  amount  of  the  fine 

which may be imposed for the offence so compounded. 

71. Power to adjudicate.—(1) For the purpose of adjudging compensation under sections 12, 14, 18 
and section 19, the Authority shall appoint, in consultation with the appropriate Government, one or more 
judicial officer as deemed necessary, who is or has been a District Judge to be an adjudicating officer for 

30 

 
holding an inquiry in the prescribed manner, after giving any person concerned a reasonable opportunity 
of being heard: 

Provided that any person whose complaint in respect of matters covered under sections 12, 14, 18 and 
section  19  is  pending  before  the  Consumer  Disputes  Redressal  Forum  or  the  Consumer  Disputes 
Redressal Commission or the National Consumer Redressal Commission, established under section 9 of 
the Consumer Protection Act, 1986 (68 of 1986), on or before the commencement of this Act, he may, 
with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending 
before it and file an application before the adjudicating officer under this Act. 

(2)  The  application  for  adjudging  compensation  under  sub-section  (1),  shall  be  dealt  with  by  the 
adjudicating  officer  as  expeditiously  as  possible  and  dispose  of  the  same  within  a  period  of  sixty  days 
from the date of receipt of the application: 

Provided  that  where  any  such  application  could  not  be  disposed  of  within  the  said  period  of  sixty 
days, the adjudicating officer shall record his reasons in writing for not disposing of the application within 
that period. 

(3)  While  holding  an  inquiry  the  adjudicating  officer shall  have  power to  summon  and  enforce  the 
attendance of any person acquainted with the facts and circumstances of the case to give evidence or to 
produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to 
the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply 
with  the  provisions  of  any  of  the  sections  specified  in  sub-section  (1),  he  may  direct  to  pay  such 
compensation or interest, as the case any be, as he thinks fit in accordance with the provisions of any of 
those sections. 

72. Factors to be taken into account by the adjudicating officer.—While adjudging the quantum 
of compensation or interest, as the case may be, under section 71, the adjudicating officer shall have due 
regard to the following factors, namely:— 

(a)  the  amount  of  disproportionate  gain  or  unfair  advantage,  wherever  quantifiable,  made  as  a 

result of the default; 

(b) the amount of loss caused as a result of the default; 

(c) the repetitive nature of the default; 

(d) such other factors which the adjudicating officer considers necessary to the case in furtherance 

of justice. 

CHAPTER IX 

FINANCE, ACCOUNTS, AUDITS AND REPORTS 

73.  Grants  and  loans  by  Central  Government.—The  Central  Government  may,  after  due 
appropriation made by Parliament in this behalf, make to the Authority grants and loans of such sums of 
money as that Government may consider necessary. 

74. Grants and loans by State Government.—The State Government may, after due appropriation 
made by State Legislature by law in this behalf, make to the Authority, grants and loans of such sums of 
money as the State Government may think fit for being utilised for the purposes of this Act. 

75. Constitution of Fund.—(1) The appropriate Government shall constitute a fund to be called the 

'Real Estate Regulatory Fund’ and there shall be credited thereto,— 

(a) all Government grants received by the Authority; 

(b) the fees received under this Act; 

(c) the interest accrued on the amounts referred to in clauses (a) to (b). 

31 

 
 
 
(2) The Fund shall be applied for meeting— 

(a) the salaries and allowances payable to the Chairperson and other Members, the adjudicating 
officer and the administrative expenses including the salaries and allowances payable to  the officers 
and other employees of the Authority and the Appellate Tribunal; 

(b) the other expenses of the Authority in connection with the discharge of its functions and for 

the purposes of this Act. 

(3)  The  Fund  shall  be  administered  by  a  committee  of  such  Members  of  the  Authority  as  may  be 

determined by the Chairperson. 

(4) The committee appointed under sub-section (3) shall spend monies out of the Fund for carrying 

out the objects for which the Fund has been constituted. 

76.  Crediting  sums  realised  by  way  of  penalties  to  Consolidated  Fund  of  India  or  State 
account.—(1)  All  sums  realised,  by  way  of  penalties,  imposed  by  the  Appellate  Tribunal  or  the 
Authority, in the Union territories, shall be credited to the Consolidated Fund of India. 

(2) All sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in a 

State, shall be credited to such account as the State Government may specify. 

77.  Budget,  accounts  and  audit.—(1)  The  Authority  shall  prepare  a  budget,  maintain  proper 
accounts and other relevant records and prepare an annual statement of accounts in such form as may be 
prescribed  by  the  appropriate  Government  in  consultation  with  the  Comptroller  and  AuditorGeneral  of 
India. 

(2) The accounts of the Authority shall be audited by the Comptroller and AuditorGeneral of India at 
such  intervals  as  may  be  specified  by  him  and  any  expenditure  incurred  in  connection  with  such  audit 
shall be payable by the Authority to the Comptroller and AuditorGeneral of India. 

(3) The  Comptroller  and Auditor-General and  any  person appointed  by  him  in  connection  with the 
audit  of  the  accounts  of  the  Authority  under  this  Act  shall  have  the  same  rights  and  privileges  and 
authority  in  connection  with  such  audit  as  the  Comptroller  and  AuditorGeneral  generally  has  in 
connection with the audit of Government accounts and, in particular shall have the right to demand and 
production of books, accounts, connected vouchers and other documents and papers, and to inspect any of 
the offices of the Authority. 

(4) The accounts of the Authority, as certified by theComptrollerand Auditor-General of India or any 
other  person appointed  by  him  in  this  behalf,  together  with  the  audit report  thereon  shall  be forwarded 
annually to the appropriate Government by the Authority and the appropriate Government shall cause the 
audit report to be laid, as soon as may be after it is received, before each House of Parliament or, as the 
case  may  be,  before  the  State  Legislature  or  the  Union  territory  Legislature,  where  it  consists  of  two 
Houses, or where such legislature consists of one House, before thatHouse. 

78. Annual  report.—(1) The Authority shall prepare once in every year, in such form and at such 

time as may be prescribed by the appropriate Government,— 

(a) a description of all the activities of the Authority for the previous year; 

(b) the annual accounts for the previous year; and 

(c) theprogrammes of work for the coming year. 

(2)  A  copy  of  the  report  received  under  sub-section  (1)  shall  be  laid,  as  soon  as  may  be  after  it  is 
received,  before  each  House  of  Parliament  or,  as  the  case  may  be,  before  the  State  Legislature  or  the 
Union Territory  Legislature, where it consists of two Houses, or where such legislature consists of one 
House, before that House. 

32 

 
 
 
CHAPTER X 

MISCELLANEOUS 

79. Bar of jurisdiction.—No civil court shall have jurisdiction to entertain any suit or proceeding in 
respect  of  any  matter  which  the  Authority  or  the  adjudicating  officer  or  the  Appellate  Tribunal  is 
empowered  by  or  under this  Act to  determine and  no  injunction  shall be  granted  by  any  court  or  other 
authority in respect of any action taken or to be taken in pursuance  of any power conferred by or under 
this Act. 

80.  Cognizance  of  offences.—(1)  No  court  shall  take  cognizance  of  any  offence  punishable  under 
this Act or the rules or regulations made thereunder save on a complaint in writing made by the Authority 
or by any officer of the Authority duly authorised by it for this purpose. 

(2)  No  court inferior to  that  of a  Metropolitan  Magistrate or  a Judicial  Magistrate  of  the  first  class 

shall try any offence punishable under this Act. 

81. Delegation.—The Authority may, by general or special order in writing, delegate to any member, 
officer of the Authority or any other person subject to such conditions, if any, as may be specified in the 
order,  such  of  its  powers  and  functions  under  this  Act  (except  the  power  to  make  regulations  under 
section 85), as it may deem necessary. 

82.  Power  of  appropriate  Government  to  supersede  Authority.—(1)  If,  at  any  time,  the 

appropriate Government is of the opinion,— 

(a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge 

the functions or perform the duties imposed on it by or under the provisions of this Act; or 

(b)  that  the  Authority  has  persistently  defaulted  in  complying  with  any  direction  given  by  the 
appropriate  Government  under  this  Act  or  in  the  discharge  of  the  functions  or  performance  of  the 
duties imposed on it by or under the provisions of this Act and as a result of such default the financial 
position of the Authority or the administration of the Authority has suffered; or 

(c) that circumstances exist which render it necessary in the public interest so to do, 

the appropriate Government may, by notification, supersede the Authority for such period, not exceeding 
six months, as may be specified in the notification and appoint a person or persons as the President or the 
Governor, as the case may be, may direct to exercise powers and discharge functions under this Act: 

Provided  that  before  issuing  any  such  notification,  the  appropriate  Government  shall  give  a 
reasonable  opportunity  to  the  Authority  to  make  representations  against  the  proposed  supersession  and 
shall consider the representations, if any, of the Authority. 

(2) Upon the publication of a notification under sub-section (1) superseding the Authority,— 

(a)  the  Chairperson  and  other  Members  shall,  as  from  the  date  of  supersession,  vacate  their 

offices as such; 

(b)  all  the  powers,  functions  and  duties  which  may,  by  or  under  the  provisions  of  this  Act,  be 
exercised  or  discharged  by  or  on  behalf  of  the  Authority  shall,  until  the  Authority  is  reconstituted 
under  sub-section  (3),  be  exercised  and  discharged  by  the  person  or  persons  referred  to  in  
sub-section (1); and 

(c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted 

under sub-section (3), vest in the appropriate Government. 

(3) On or before the expiration of the period of supersession specified in the notification issued under 
sub-section (1), the appropriate Government shall reconstitute the Authority by a fresh appointment of its 
Chairperson and other members and in such case any person who had vacated his office under clause (a) 
of sub-section (2) shall not be deemed to be disqualified for re-appointment. 

(4) The appropriate  Government  shall  cause a  copy  of the notification issued under  sub-section (1) 
and a full report of any action taken under this section and the circumstances leading to such action to be 
laid before each House of Parliament or, as the case may be, before the State Legislature, or the Union 

33 

 
Territory  Legislature,  as  the  case  may  be,  where  it  consists  of  two  Houses,  or  where  such  legislature 
consists of one House, before that House. 

83. Powers of appropriate Government to issue directions to Authority and obtain reports and 
returns.—(1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in exercise of 
its powers and in performance of its functions under this Act, be bound by such directions on questions of 
policy, as the appropriate Government may give in writing to it from time to time: 

Provided that the Authority shall, as far as practicable, be given an opportunity to express its views 

before any direction is given under this sub-section. 

(2)  If  any  dispute  arises  between  the  appropriate  Government  and  the  Authority  as  to  whether  a 
question  is  or  is  not  a  question  of  policy,  the  decision  of  the  appropriate  Government  thereon  shall  be 
final. 

(3) The Authority shall furnish to the appropriate Government such returns or other information with 

respect to its activities as the appropriate Government may, from time to time, require. 

84.  Power  of  appropriate  Government  to  make  rules.—(1)  The  appropriate  Government  shall, 
within a period of six months of the commencement of this Act, by notification, make rules for carrying 
out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

1[(a)  the  form,  time  and  manner  of  making  application  and  fees  payable  therewith  under  

sub-section (1) of section 4; 

(ab) information and documents for application to the Authority for registration under clause (m) 

of sub-section (2) of section 4; 

(ac) the form of application and the fees for extension of registration under section 6;] 

(b) the form and manner of making application and fee and documents to be accompanied with 

such application as under sub-section (2) of section 9; 

(c)  the  period,  manner  and  conditions  under  which  the  registration  is  to  be  granted  under  

sub-section (3) of section 9; 

(d)  the  validity  of  the  period  of  registration  and  the  manner  and  fee  for  renewal  under  

sub-section (6) of section 9; 

(e)  the  maintenance  and  preservation  of  books  of  account,  records  and  documents  under  

clause (b) of section 10; 

(f) the discharge of other functions by the real estate agent under clause (e) of section 10; 

(g) the rate of interest payable under section 12; 

(h) the form and particulars of agreement for sale under sub-section (2) of section 13; 

(i) the rate of interest payable under clause (b) of sub-section (1) of section 18; 

(j) the rate of interest payable under sub-section (4) of section 19; 

(k) the rate of interest payable under sub-section (7) of section 19; 

(l) the manner of selection of Chairperson and Members of Authority under section 22; 

(m) the salaries and allowances payable to, and the other terms and conditions of service of, the 

Chairperson and other Members of the Authority under sub-section (1) of section 24; 

(n) the administrative powers of the Chairpersons under section 25; 

1. Subs. by  the Real Estate (Regulation and Development) Removal of Difficulties  Order, 2016 [S.O. 3347(E)], for clause (a) 
(w.e.f. 28-10-2016). 

34 

 
                                                           
(o) the salaries and allowances payable to, and the other terms and conditions of service of, the 

officers and other employees of the Authority under sub-section (2) of section 28; 

1[(oa) the form, manner and fees for filing of a complaint under sub-section (2) of section 31;] 

(p)  the  details  to  be  published  on  the  website  as  under  clause  (b)  and  under  clause  (d)  of  

section 34; 

(q)  the  additional  functions  which  may  be  performed  by  the  Authority  under  clause  (iv)  of 

sub-section (2) of section 35; 

(r)  the  manner  of  recovery  of  interest,  penalty  and  compensation  under  sub-section  (1)  of  

section 40; 

(s) the manner of implementation of the order, direction or decisions of the adjudicating officer, 

the Authority or the Appellate Tribunal under sub-section (2) of section 40; 

(t)recommendations  received  from  the  Central  Advisory  Council  under  sub-section  (2)  of  

section 42; 

(u) theform and manner and fee for filing of appeal under sub-section (2) of section 44; 

(v) the manner of selection of Members of the Tribunal under sub-section (3) of section 46; 

(w) the salaries and allowances payable to, and the other terms and conditions of service of, the 

Chairperson and other Members of the Appellate Tribunal under sub-section (1) of section 48; 

(x)  the  procedure  for  inquiry  of  the  charges  against the  Chairperson  or Judicial  Member  of  the 

Tribunal under sub-section (4) of section 49; 

(y) the salaries and allowances payable to, and the other terms and conditions of service of, the 

officers and employees of the Appellate Tribunal under sub-section (3) of section 51; 

(z) any other powers of the Tribunal under clause (g) of sub-section (4) of section 53; 

(za) the powers of the Chairperson of the Appellate Tribunal under section 54; 

(zb)  the  terms  and  conditions  and  the  payment  of  such  sum  for  compounding  of  the  offences 

under section 70; 

(zc) the manner of inquiry under sub-section (1) of section 71; 

(zd)  the  form  to  be  specified  in  which  the  Authority  shall  prepare  a  budget,  maintain  proper 
accounts and other relevant records and prepare an annual statement of accounts under sub-section (1) 
of section 77; 

(ze)  the  form  in  which  and  time  at  which  the  Authority  shall  prepare  an  annual  report  under 

sub-section (1) of section 78; 

(zf) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 

be made, by rules. 

85.  Power  to  make  regulations.—(1)  The  Authority  shall,  within  a  period  of  three  months  of  its 
establishment, by notification, make regulations, consistent with this Act and the rules made thereunder to 
carry out the purposes of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

2* 

* 

* 

* 

* 

(c)  such  other  information  and  documents  required  under  clause  (f)  of  sub-section  (1)  of  

section 11; 

1.  Ins.  by  the  Real  Estate  (Regulation  and  Development)  Removal  of  Difficulties  Order,  2016  [S.O.  3347(E)],  

(w.e.f. 28-10-2016). 

2. Omitted by ibid. (w.e.f. 28-10-2016). 

35 

 
 
 
 
 
 
 
 
                                                           
(d) display of sanctioned plans, layout plans along with specifications, approved by the competent 

authority, for display under clause (a) of sub-section (3) of section 11; 

(e) preparation and maintenance of other details under sub-section (6) of section 11; 

(f)  time,  places  and  the  procedure  in  regard  to  transaction  of  business  at  the  meetings  of  the 

Authority under sub-section (1) of section 29; 

1* 
(h)  standard  fees  to  be  levied  on  the  promoter,  the  allottees  or  the  real  estate  agent  under  

* 

* 

* 

* 

clause (e) of section 34; 

(i) any other matter which is required to be, or may be, specified by regulation or in respect of 

which provision is to be made by regulations. 

86. Laying of rules.—(1) Every rule made by the Central Government, every regulation made by the 
Authority  under  the  Union  territory  of  Delhi  and  the  Union  territories  without  Legislature  and  every 
notification issued by the Central Government under this Act shall be laid, as soon as may be after it is 
made, before each House of Parliament, while it is in session, for a total period of thirty days which may 
be comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the rule or regulation or in the notification, as the case may be, or both Houses agree that 
the rule or regulation or the notification should not be made, the rule or regulation or notification, as the 
case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may 
be;  so,  however,  that  any  such  modification  or  annulment  shall  be  without  prejudice  to  the  validity  of 
anything previously done under that rule or regulation or notification, as the case may be. 

(2) Every rule made by a State Government or the Union territory Government, as the case may be, 
every regulation made by the Authority under the State Government or 2[the Union territory Government 
of Puducherry or the Union territory Government of Jammu and Kashmir], as the case may be, and every 
notification  issued  by  the  State  Government  or    2[theUnion  territory  Government  of  Puducherry  or  the 
Union territory Government of Jammu and Kashmir], as the case may be, under this Act, shall be laid as 
soon as may be, after it is made, before the State Legislature, or the Union territory Legislature, as the 
case may be, where it consists of two Houses, or where such legislature consists of one House, before that 
House. 

87.  Members,  etc.,  to  be  public  servants.—The  Chairperson,  Members  and  other  officers  and 
employees of the Authority, and the Appellate Tribunal and the adjudicating officer shall be deemed to be 
public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

88. Application of other laws not barred.—The provisions of this Act shall be in addition to, and 

not in derogation of, the provisions of any other law for the time being in force. 

89.  Act  to  have  overriding  effect.—The  provisions  of  this  Act  shall  have  effect,  notwithstanding 

anything inconsistent therewith contained in any other law for the time being in force. 

90. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall 
lie against the appropriate Government or the Authority or any officer of the appropriate Government or 
any  member,  officer  or  other  employees  of  the  Authority  for  anything  which  is  in  good  faith  done  or 
intended to be done under this Act or the rules or regulations made thereunder. 

91. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions 
not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: 

Provided that no order shall be made under this section after the expiry of two years from the date of 

the commencement of this Act. 

1.  Omitted  by  the  Real  Estate  (Regulation  and  Development)  Removal  of  Difficulties  Order,  2016  [S.O.  3347  (E)],  

(w.e.f. 28-10-2016). 

2. Subs. by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Third Order, 2020, vide notification No. S.O.  

3807(E) dated (26-10-2020). 

36 

 
 
 
 
 
 
 
 
                                                           
 
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

92. Repeal.—The Maharashtra Housing (Regulation and Development) Act, 2012 (Maharashtra Act 

No. II of 2014) is hereby repealed. 

37 

 
